Pakistan must protect local cotton, yarn sector: PDP Chief

Pasban Democratic Party (PDP) chairman Altaf Shakoor has urged the Pakistani government to safeguard its domestic crops and products by rationalizing taxes and duties, following the US decision to impose higher duties on imports from China, Canada, and Mexico. He criticized Pakistan’s policy of allowing duty-free and tax-free imports of cotton and yarn, arguing that no other country permits such concessions at the expense of local producers. Imported cotton and yarn, he said, are being sold in the domestic market, making it impossible for Pakistani products to compete.

Shakoor highlighted the demand by the All Pakistan Textile Mills Association (APTMA) for the immediate restoration of the Export Finance Scheme (EFS) to its pre-Finance Act 2024 status, which provided sales tax exemptions and zero-rating for export-related local supplies. He warned that misuse of EFS, particularly in exempting imported cotton and blended yarns from duties, is causing massive losses and closures in the local textile sector.

He stressed that Pakistani cotton farmers are being unfairly sidelined to benefit foreign imports, calling it an alarming policy that weakens local agriculture and industry. Shakoor urged urgent policy revisions to protect Pakistan’s economy and ensure fair competition for local producers.