Pakistan needs at least 4 million bales of cotton to overcome the shortage of the commodity.
Mr Aftab Alam, Karachi Cotton Association expressed his concerns over the government decision to impose 3% customs duty, 2% additional custom duty, 5% sale tax and 1% income tax on import of raw cotton to boost usage of local cotton crop.
Due to projected cotton production decline in year 2018-19 a shortage of 4 million bales is expected.
Water shortage, sugarcane cultivation adopted over cotton cultivation, supply of uncertified cotton seed and several other factors will result in reduction in yield per acre.
To achieve the export targets the cotton association is compelled to import raw cotton in order to meet its requirements.
Mr Aftab Alam said, “After payment of such heavy duties and taxes imposed on import of cotton, the cost of the raw material of the textile industry, which is imported cotton, will be increased due to which the local textile industry will become unable to compete in the international market”.
