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Tag: cotton import

  • Textile Council recommends cotton import from India

    Textile Council recommends cotton import from India

    KARACHI: Pakistan Textile Council (PTC) in a statement on Monday said the country should import cotton from neighboring India to avoid another balance of payment crisis.

    The country’s textiles industry, which earned more than $19 billion in exports last year, is facing a shortage of raw material as flash floods have damaged about half of the nation’s cotton produce since June, it said.

    “The unprecedented rainfall resulting in floods has caused havoc in Pakistan,” said the PTC.

    One-third of Pakistan is submerged in water, thousands of homes have been destroyed, more than 1,500 people have lost their lives and most importantly about 18,000 sq km of cropland has been ruined, including about 45 per cent of the cotton crop.

    The country will face a cost far greater than $10 billion in damages, with the loss of food crops alone amounting to about $2.3 billion, a particularly heavy burden at a time of rising food prices around the world.

    Pakistan is a major producer of rice and cotton, and both crops have suffered severe damages.

    As part of the devastation, flood damage will likely force Pakistan to increase cotton imports at a time when production in the US is forecasted to plunge by 28 per cent due to drought

    And with restrictions on China, Pakistan will not be able to procure raw materials from there as well, the Council said.

    The outlook for Brazil is also not very encouraging. According to ABRAPA, the drought there has already dried up an estimated 200,000 tons of cotton supply.

    All these factors are causing the price of cotton to increase in local and international markets.

    Given the continuous depreciation of the rupee and a record high shipping freight, importing cotton from far-located countries like the US, Brazil, Egypt, etc. will not be economically viable, the PTC said.

    Last year, 2021-22, Pakistan’s textile exports rose to an all-time high of $19.3 billion but even achieving this mark would be challenging given the no availability of raw material to factories.

    The Council said that it was imperative for Pakistan to keep its export growth momentum to finance the import bill and keep the balance of payment situation manageable and avoid default conditions.

    “Import of raw cotton from India must be immediately allowed to mitigate the raw material shortage,” it said. The move will help Pakistan reduce trade time and curtail heavy logistics costs.

    “The declining textile exports will lead to the balance of payment crisis, and reduced productivity will put millions of jobs at on stake which the country cannot afford,” the Textile Council warned.

    The declining textile exports will lead to the balance of payment crisis, and reduced productivity will put millions of jobs at stake which the country cannot afford,” the Textile Council warned.

  • Textile exporters urge allowing cotton import from India

    Textile exporters urge allowing cotton import from India

    KARACHI: Textile exporters have urged the government to allow import of cotton and cotton yarn from India and other countries through land routes.

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  • FBR notifies duty exemption on cotton yarn import

    FBR notifies duty exemption on cotton yarn import

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified exemption of customs duty on import of cotton yarn till June 30, 2021.

    The FBR issues SRO 533(I)/2021 to comply with the decision of Economic Coordination Committee of the Cabinet (ECC) to exempt whole of customs duty on import of cotton and cotton yarn.

    The ECC on April 14, 2021 approved the withdrawal of customs duty to ensure smooth supply of cotton and cotton yarns to the value-added industry, while bridging the gap between domestic production and overall demand for the inputs.

    The FBR allowed duty exemption on cotton yarn on import of following categories:

    — Cotton Yarn (other than sewing thread), containing 85 percent or more by weight of cotton, not put up for retail sale.

    — Cotton Yarn (other than sewing thread), containing less than 85 percent by weight of cotton, not put up for retail sale.

    — Cotton Yarn (other than sewing thread) put up for retail sale.

  • Exporters welcome duty withdrawal on cotton, yarn import

    Exporters welcome duty withdrawal on cotton, yarn import

    KARACHI: Value-added textile exporters have welcomed the decision of the Economic Coordination Committee (ECC) of the cabinet to remove customs duty on import of cotton and yarn.

    Value-Added Textile Exporters convey sincere gratitude and thanks to Prime Minister Imran Khan, Adviser Commerce Razak Dawood and Federal Cabinet on the ECC for according genuine consideration to the demand of Value Added Textile Export Sector to allow duty free import of cotton yarn till June 30, 2021 which exporters were demanding since October 2020 due to unavailability of cotton yarn in the local market.

    The belated decision, however, shall provide only partial relief in the wake of sea trade congestion as the shipments are taking more than two months time to reach Pakistani ports.

    Therefore, textile exporters are of the opinion and appeal the Government to allow duty free import of cotton yarn till time the government achieves its set cotton production target of 10.5 million bales.

    To ease down the cotton yarn availability crisis, it is also imperative that to also place ban on export of cotton yarn from Pakistan or impose 10 percent duty on export of cotton yarn from Pakistan and take necessary steps and measures to import cotton yarn safely from Central Asian Republics through land route by activating all the transit trade agreements signed with regional countries as the sea route is taking prolong duration due to shortage of containers and vessels.

    The textile exporters once again request the Government to take cognizance over hoarding of cotton yarn and cartelization by concerned which are actionable as per law under the Price Control and Prevention of Profiteering & Hoarding Act 1977 and Competition Act of Pakistan 2010.

    According to the said Act of 1977 cotton yarn is included in the schedule of essential commodities like sugar, wheat, edible oil etc. Therefore, the Government must immediately take action as per the law against spinning mills and  yarn traders involved in monopoly, abusive dominance for exorbitant pricing and hoarding and immediately conduct raids by arresting the culprits and seize the hoarded cotton yarn and also conduct Forensic Audit on the pattern of sugar crisis that will prove it many times bigger scam than the sugar scam as it is learned that approx. 2 million bales have been sold without sales tax and invoices in the local market.

    This joint statement was issued by the Value Added Textile Sector Associations: Jawed Bilwani, Chairman, Pakistan Apparel Forum, Waheed Khaliq Ramay of Power Looms Owners Association, Ijaz Khokhar, Chief Coordinator & Ex-Central Chairman, Pakistan Readymade Garment Manufacturers & Exporter Association, Riaz Ahmed, Central Chairman Mian Farrukh  Iqbal, Senior Vice Chairman, Pakistan Hosiery Manufacturers & Exporters Association, Syed Aasim Shah, Former Chairman, All Pakistan Bedsheets & Upholstery Manufacturers Association, Rafiq Godil Chairman, Former Chairman, Pakistan Knitwear & Sweaters Exporters Association, Dr. Shahzad Arshad, Chairman, Pakistan Cotton Fashion Apparels Mfrs. & Exporters Association, Aamir Lari, Vice Chairman, Towel Manufacturers Association of Pakistan, Abdus Samad, Chairman, Pakistan Cloth Merchants’ Association.

    In another statement Hanif Lakhany, Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) & Senior Vice Chairman Pakistan Yarn Merchants Association(PYMA) and Vice Chairman Farhan Ashrafi & convener FPCCI’s Central Standing Committee on Yarn Trading, have lauded ECC decision to withdraw customs duty on cotton yarns, and said that ECC of the Cabinet withdrew customs duty on import of cotton yarns under PCT 5205, 5206 and 5207 till 30th June, 2021.

    However, both officials called for the abolition of additional customs duties & regulatory duty on synthetic yarns for countering the negative effects of the Corona epidemic and to continue the production activities. They also reiterated demand to allow import cotton & cotton yarn from India

    In a statement, Hanif Lakhany & Farhan Ashrafi said the ECC was commendable but the removal of additional customs duty & regulatory duty on synthetic yarns should also be abolished to support the textile industry, which is facing hurdles due to unavailability of raw materials and high prices. So immediate permission should be given for cotton & cotton yarn import from India.

    “Due to low production of cotton in the country and huge increase in the price of cotton yarn in the local market, the cost of industrial production has gone up significantly. On the contrary, it is becoming more and more difficult to run industries, which may affect the delivery of export orders”, they pointed out.

    Hanif Lakhany and Farhan Ashrafi requested the government to allow import of cotton & cotton yarn from India in the best interest of the economy to ensure timely fulfilment of export orders. Which will be warmly welcomed by the business and industrial community across the country.

  • ECC approves cotton, yarn import from India

    ECC approves cotton, yarn import from India

    ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved import of cotton and yarn from India.

    This was disclosed by Abdul Razak Dawood, Adviser to Prime Minister of Pakistan for Commerce and Investment, in a tweet.

    “To keep the momentum of our value-added exports, ECC in its meeting held today approved import of Cotton and Cotton Yarn from India, including land route,” he said, adding that this would now be placed before the Cabinet for approval, after which it will be notified.

    The adviser said that the ECCP also approved the formation of a National Export Development Board (NEDB).

    The board will be chaired by the Prime Minister Imran Khan and will also include ministers, exporters, investors and the business community, the adviser said this on his official twitter account.

    He said the NEDB became the main forum to discuss the strategy, incentives and removal of business hurdles.

  • ECC approves cotton import through land route

    ECC approves cotton import through land route

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved import of cotton through land route subject to fulfillment of codal formalities.

    Federal minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the ECC.

    The ministry of commerce tabled a summary before the ECC seeking permission for import of cotton from Afghanistan and Central Asian States through land route via Torkham border to bridge the gap between supply and demand and to ensure sufficient availability of cotton for promoting textile exports.

    The ECC had granted such permission earlier to workout necessary arrangements with reference to Plant Quarantine Rules to meet Sanitary and Phytosanitary (SPS) requirements for import of cotton via land routes.

    The ministry of commerce requested to extend the above permission for import of cotton via land route during the current financial year. The ECC approved the said request subject to fulfillment of codal formalities.

    Ministry of Industries and Production presented a ‘Ramadan Relief Package-2021’ in accordance with the directive of the Prime Minister to provide maximum relief to the marginalized segments of the society during the holy month of Ramadan.

    The Utility Stores Corporation would subsidize 19 essential items under the proposed relief package entailing subsidy equivalent to approx. Rs. 7.8 billion including wheat flour, sugar and ghee which have significant differential vis-a-vis prevailing prices in the domestic markets.

    The MD, USC briefed the forum that procurement would start from 01 April, 2021 to ensure availability of basic items at discounted prices across 4000 outlets of USCs throughout the country. The Committee directed MD USC to coordinate with Finance Division for timely release of funds to ensure well-timed procurement and other contingent arrangements.

    The ministry of industries and production presented another summary seeking permission regarding operation of two plants namely Agritech and Fatima Fertilizer from March till November, 2021 to produce urea from SNGPL based plants.

    The underlying rationale is to bridge the gap between estimated demand and actual domestic production of urea in the country.

    The Committee approved operations of the above-mentioned plants with a direction that the Ministry may closely monitor the demand-supply situation and take decision to import urea, if needed, as per requirement during the current year.

    Secretary, Ministry of National Health Services, Regulation and Coordination tabled a summary for exemption of taxes and duties on import of auto disable syringes and raw material needed for local manufacturing of auto disable syringes in the country.

    The Secretary Health briefed the forum about efforts underway to switch from conventional syringes to auto disable syringes as reuse of conventional syringes leads to blood borne diseases in Pakistan such as hepatitis, HIV etc.

    The ECC approved the summary, in principle, and directed the Ministry of Health to hold a follow-up meeting with the Law Division to fine tune details.

    The ECC also considered a summary regarding exemption of Federal Excise Duty for 10 soft-skin vehicles imported by Food and Agriculture Organization (FAO) to be used by the Department of Plant Protection (DPP) for locust control operations. Ministry of NFS&R requested for a one-time exemption of Federal Excise Duty amounting to Rs.10.3 million for 10 vehicles.

    After due deliberation, the ECC constituted a Committee with representatives from Law Division, FBR and Ministry of National Food Security and Research for further discussion and submission of updated proposal before the Committee.

    Secretary, Ministry of the Information Technology and Telecommunication presented a summary before the Committee based on recommendations by a Cross-stakeholder Committee for addressing critical issues of Cellular Mobile Industry for digital enablement such as reduction in NADRA Biometric Verification Charges (BVC), License renewal under further Spectrum Price etc.

    After detailed discussion, the ECC constituted a sub-committee under the Chairmanship of the Adviser to the Prime Minister on Institutional Reforms and Austerity Ishrat Hussain with Secretary IT, Secretary Finance and a representative from PTA as its members to deliberate further and present before the ECC accordingly.

    Secretary, Ministry of Communications updated ECC on National Freight and Logistics Policy (NFLP) discussed in earlier meeting held on 20th January, 2021.

    The Ministry of Communications has segregated the proposals into two broad categories in line with the earlier directive of the Committee.

    The ECC directed to discuss the proposals involving multiple stakeholders as envisaged under the NFLP, through an Institutional framework, steered by the Deputy Chairman Planning for evolving consensus among all stakeholders including provincial representatives for a way forward.

    Petroleum Division updated the ECC about the recommendations firmed up by a sub-committee established in line with the earlier decision of the ECC dated 28 Jan, 2021 regarding review of Oil Marketing Companies (OMCs) and Dealers Margins on Petroleum products.

    After detailed discussion, the ECC approved to revise OMCs and Dealers Margins on the basis of 85% of the latest average core inflation with immediate effect, and directed to expedite a study by PIDE.

    The Power Division submitted another summary about re-targeting of Power Sector subsidies (phase-I). The Committee considered and approved the proposals recommending that Power Division will complete the analysis based on the listed principles and submit specific recommendations on thresholds and rates for the consumers before the ECC by 31st March, 2021.

    The following Technical Supplementary Grants were also approved by the ECC:

    1. Rs. 1056 million for the Ministry of Federal Education and Professional Training for completion of Projects related to COVID-19.

    2. Rs. 1.5 billion for the Ministry of Housing and Works for disbursement of interest free loans to the borrowers under Prime Minister’s Low-Cost Housing Scheme.

    3. Rs.334.306 million for the Ministry of Interior for the payment of salaries / subsistence allowance to the Civil Armed Forces deployed in the Peacekeeping Missions.

    4. Rs.31.50 million for meeting expenses of Federal Insurance Ombudsman Secretariat working under the Ministry of Law and Justice.

    5. Rs. 9.685 million for Pakistan National Shipping Corporation, Karachi to clear the dues of M/s Coniston against PSM.

    6. Rs.67.358 million for the Cabinet Division for meeting various expenses.

    7. Rs. 419 million were approved to facilitate Pakistan Central Cotton Committee to carry out its research and development activities.

    Federal Minister for National Food Security & Research Syed Fakhar Imam, Federal Minister for Energy Omar Ayub Khan, Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Industries and Production Hammad Azhar, Federal Minister for Railways Azam Khan Swati, Federal Minister for Privatization Muhammad Mian Soomro, Adviser to PM on Commerce Abdul Razak Dawood, Governor State Bank of Pakistan Reza Baqir, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, Federal Secretaries from MNS&F, Ministry of Interior, Ministry of Maritime Affairs, National Health Services, Law and Justice Division, Ministry of Information Technology & Telecommunication, Chairman Board of Investment, Deputy Chairman Planning Commission, MD Utility Stores Corporation and other senior officials participated in the meeting.

  • Regulatory duty on cotton import withdrawn

    Regulatory duty on cotton import withdrawn

    ISLAMABAD: The government has withdrawn 3 percent regulatory duty on import of cotton, a notification said on Tuesday.

    Federal Board of Revenue (FBR) issued SRO 38(I)/2020 to withdraw 3 percent regulatory duty on import of cotton.

    Through SRO 949(I)/2019 the regulatory duty was imposed on import of cotton.

    The regulatory duty was imposed on August 22, 2019, after unfavorable weather conditions, particularly prolonged hot and dry weather conditions, coupled with massive attacks of whitefly, pink bollworm, and other pests/insects gave cotton crop heavy battering.

    Moreover, growers are increasingly losing interest in planting cotton because they are not getting any returns or profits as the production cost is rising and the market prices are falling.

    The latest withdrawal of regulatory duty was granted in pursuance to approval by Economic Coordination Committee (ECC) of Cabinet earlier this month.

    Last year on October 4, 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 year 2019-2020.

    In order to fill the gap, the commerce division had proposed duty-free import of cotton.

    But the ECC was informed that bulk of cotton would be lifted from local farmers by January 1 this 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.

  • ECC allows duty free import of cotton

    ECC allows duty free import of cotton

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved duty-free import of cotton.

    The ECC took the decision at a meeting held here under the chairmanship of Advisor to Prime Minister on Finance and Revenue, Hafeez Shiekh in the chair.

    The meeting also allowed cotton import through the Torkham border.

    The ECC was informed that Cotton remained duty-free till the slab of zero percent was abolished in 2014-2015 and Custom Duty of 1 percent was imposed along with 5 percent Sales Tax.

    Later on, 1 percent slab was increased to 2 percent and then 3 percent along with 2 percent additional customs duty to make it 5 percent.

    Since 2017 the duties are withdrawn from January/February and re-imposed in July-August. It was also discussed that by January 01, 2010 the majority of the cotton would be lifted from the farmers.

    Therefore, to further protect the farmers, the meeting allowed duty-free import of cotton with effect from January 15, 2020.

    The ECC was also briefed that under Rule 28 of the Plant Quarantine Rules of 1967 / Plant Quarantine Act 1976, cotton is only allowed through sea route.

    As trade with India is currently suspended by Pakistan, therefore, Afghanistan and the Central Asian states are the more viable economic sources for the import of cotton.

    The ECC allowed import of cotton from Torkham Border subject to fulfillment of all sanitary and phytosanitary (SPS) conditions.

    The ECC also desired that a comprehensive briefing may be given by the Ministry of National food Security and Research on matters pertaining to cotton production for next cotton season.

    It may be noted that during first five months of current financial year, i.e. July-November 2019-20, the value-added readymade garments have increased by 35 percent, knitwear by 6 percent and bedwear by 14 percent in quantity terms as compared to the corresponding period of the previous year.

  • FBR issues SROs to withdraw additional, customs duty on import of cotton

    FBR issues SROs to withdraw additional, customs duty on import of cotton

    ISLAMABAD: Federal Board of Revenue (FBR) has exempted customs duty and additional customs duty on import of cotton for the period of February 01 to June 30, 2019.

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  • ECC approves clearance of imported vehicles on verified foreign currency payment

    ECC approves clearance of imported vehicles on verified foreign currency payment

    ISLAMABAD – In a recent session, the Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Asad Umar, gave its approval for a significant policy shift regarding the clearance of imported vehicles under various schemes.

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