Pakistan has allowed cotton imports through the Torkham border from Afghanistan and Central Asian States to meet the growing demand of the textile value-added sector.
All duties and taxes on cotton imports were waived at a meeting of the Economic Coordination Committee (ECC) of the cabinet in Islamabad on Monday
The decision will be effective from January 15, 2020. One percent customs duty and a 5pc sales tax had been imposed on cotton imports in 2014-15. Over the next few years, the imports were subject to 3pc regulatory duty, 2pc additional customs duty and 5pc sales tax.
In order to fill the demand-production gap, the commerce division proposed duty-free cotton imports. The ECC was informed the bulk of cotton would be lifted from local farmers by Jan 1 next year and the proposed exemption would not adversely affect the interests of local growers.
Commerce and food security divisions were directed to engage with cotton importers for the establishment of facilities at the Torkham border crossing.
Afghanistan and Central Asian states have become more viable economic sources of cotton imports for Pakistan, which suspended trade with India some months back.
