Earlier in the budget speech, it was decided that 2 percent customs duty on filament yarn, 2 percent additional customs duty reduction, and the abolition of 2.5 percent regulatory duty would be given to the yarn industries of Pakistan. However, all the recommendations of the Commerce Division were ignored, and without stakeholders’ consultation, the anomalies committee’s recommendations were made part of the budget, which is being criticized by the Pakistan Yarn Merchants Association (PYMA).
Khurshid A Shaikh, member committee & former central chairman PYMA, said that the user industry of the yarn sector is facing a significant loss as the cotton production is deficient. Fibre and yarn are two major sectors that can boost the textile sector of the country. While expressing concern, PYMA said, “In case of non-reduction of duties and non-abolition of duty, the rate of duty on cloth and yarn will be the same. As a result, the textile industry is feared to be shut down, while the 7 percent gap was not maintained under cascading.”
PYMA has asked the government to change the decision and provide support to create vast employment opportunities.
