Pakistani Continues Duty-Free Import of Textile Machinery

Pakistan is contemplating a series of measures to support the textile sector. All the measures announced in financial year 2016-17 like duty-free import of textile machinery will continue in financial year 2017-18.

To stabilise cotton prices in the country, a system of cotton hedge trading for the domestic cotton will be initiated in consultation with stakeholders. A brand development fund will be launched for the textile sector. A thousand stitching units will be installed. An online textile business/trade portal for textiles using the business to business mode and the business to consumer mode will be launched. This will bring Pakistan textiles’ value chain in line with global marketing practices.

Import duty on nonwoven fabric (used in the pharmaceutical sector for manufacturing of bandages, surgical gowns, wound dressings, etc) will be reduced from the existing 16 per cent to five per cent.

The textile industry is the biggest industry of Pakistan, earning a foreign exchange of 12 billion dollars per annum for the country. However the country’s textile exports have been declining for many years due to the international recession coupled with the energy crisis and inconsistent domestic policies.

Pakistan will re-impose a four per cent customs duty and five per cent sales tax on cotton imports. The decision has been made to boost the confidence of domestic cotton growers during the upcoming sowing season.