Pakistan withdraws all duties, taxes on cotton import
Pakistan recently waived all duties and taxes on import of
cotton and allowed its import via the Torkham land border
from Afghanistan and Central Asia to meet the demand of the
value-added textile sector. The decision will be effective
from January 15. The government had in 2014-15 imposed one
per cent customs duty and 5 per cent sales tax on cotton
Over the next few years, its import was subject to 3 per
cent regulatory duty, 2 per cent additional customs duty and
5 per cent sales tax. The duties were withdrawn in
January-February 2017 and re-imposed in July-August.
The cabinetís Economic Coordination Committee (ECC) took the
On October 4 last year, the Cotton Crop Assessment Committee
projected that cotton production at the end of the year
would be 10.20 million bales as against the target of 15
million bales for the fiscal 2019-20.
To fill the gap, the commerce division has proposed
duty-free import of cotton. But the ECC was informed that
bulk of cotton would be lifted from local farmers by January
1 next year and the proposed exemption would not adversely
affect the interests of local farmers. Both the commerce and
national food divisions gave assurance that imported cotton
would facilitate textile exports which are showing an upward
trend, , according to Pakistani media reports.
The commerce and food security divisions were directed to
engage with the cotton importers for establishment of
facilities at Torkham. Necessary changes will be made in
plant quarantine regulations for providing facility of
meeting sanitary and phytosanitary requirements for cotton
import through land routes.
As trade with India was recently suspended by Pakistan,
Afghanistan and Central Asian States have become more viable
economic sources for cotton import.