The Cabinet Committee on Textile here on Wednesday decided to eliminate 5 percent customs duty on import of cotton yarn falling under chapter 52 of the Harmonized Tariff Schedule.
Status quo would be maintained on export of cotton yarn and it has been decided that Cabinet Committee will keep the Yarn exports under review and would only take corrective measures if exports cross the level of 50 million kg per month.
Federal Minister for Textile Industry, Rana M. Farooq Saeed Khan, presided over the 2nd meeting of the Cabinet Committee on Textile here today to review the production, prices and domestic availability of cotton yarn.
Federal Secretary for Textile Industry Dr Waqar Masood Khan briefed the meeting on the production trends, exports and availability of yarn for the value added export sector. After in-depth deliberation in which all factors were examined, it was decided that corrective measures are required to be taken urgently to provide a level playing field to all stakeholders in the textiles chain and need of all should be fulfilled in a competitive manner. The Cabinet Committee therefore, took the following decision
Customs duty on import of cotton yarn falling under Chapter 52 of the Harmonized Tariff Schedule will be removed with immediate effect. The Cabinet Committee will keep the Yarn exports under review and may take corrective measures if exports cross the level of 50 million kg per month. Exports of yarn will be allowed only against L/Cs and advance cash received through normal banking channels and following registrations of contracts with the Trade Development Authority of Pakistan (TDAP). It has been decided that the next meeting of the Committee will be held on 8th January 2010 to review the situation.
It was informed to the Committee that the quantum of cotton yarn exports from Pakistan has declined to 59,000 tonnes in November compared to 73 thousand tonnes in October, easing prices for the local industry and providing official agencies a sufficient room to continue with a liberalized trade regime.
The ministerial committee discussed the availability of yarn for local buyers in the face of surging exports. Some quarters in the textile industry were pushing the government to ban yarn export, or at least tax it, after prices surged to an all time high level in late October.
But officials, both at textile and agriculture ministries, continued to maintain that any such move would deprive cotton grower of an opportunity to get a reasonable return by exposing to a exploitation by industrialists.
Official sources at the MINTAX told the meeting that that figures compiled by Trade Development Authority of Pakistan (TDAP) have suggested a substantial decrease in exports during the month of November. Quoting from the TDAP's report, the official informed that about 300 thousand tonnes of yarn has been sold to buyers outside Pakistan during the period of past five months between July and November.
Meeting was attended by Mr. Nazar Muhammad Gondal, Federal Minister for Food and Agriculture, Ms. Hina Rabani Khar, State Minister for Finance, Mr. Zafar Mahmood, Secretary, Ministry of Commerce, Mr. Abdul Ghaffar Soomro, Secretary, Industries and Production, Mr. Muhammad Zia-ur-Rehman, Secretary, Food and Agriculture, Mr. Muhammad Saleem Khan, Secretary, Investment, Rao Manzar Hayat, Secretary, Industries Government of Punjab, Dr. S.M. Younus, Member, Planning Commission, Mr. Munir Qureshi, Member Customs, Federal Board of Revenue, Mr. Ahmed Hussain, Joint Secretary, Ministry of Finance, Mr. Tahir Hussain, Commissioner, Faisalabad and Mr. Mohid Ullah Shah, CE, TDAP and officers of Ministry of Textile Industry participated in the meeting.
Status quo would be maintained on export of cotton yarn and it has been decided that Cabinet Committee will keep the Yarn exports under review and would only take corrective measures if exports cross the level of 50 million kg per month.
Federal Minister for Textile Industry, Rana M. Farooq Saeed Khan, presided over the 2nd meeting of the Cabinet Committee on Textile here today to review the production, prices and domestic availability of cotton yarn.
Federal Secretary for Textile Industry Dr Waqar Masood Khan briefed the meeting on the production trends, exports and availability of yarn for the value added export sector. After in-depth deliberation in which all factors were examined, it was decided that corrective measures are required to be taken urgently to provide a level playing field to all stakeholders in the textiles chain and need of all should be fulfilled in a competitive manner. The Cabinet Committee therefore, took the following decision
Customs duty on import of cotton yarn falling under Chapter 52 of the Harmonized Tariff Schedule will be removed with immediate effect. The Cabinet Committee will keep the Yarn exports under review and may take corrective measures if exports cross the level of 50 million kg per month. Exports of yarn will be allowed only against L/Cs and advance cash received through normal banking channels and following registrations of contracts with the Trade Development Authority of Pakistan (TDAP). It has been decided that the next meeting of the Committee will be held on 8th January 2010 to review the situation.
It was informed to the Committee that the quantum of cotton yarn exports from Pakistan has declined to 59,000 tonnes in November compared to 73 thousand tonnes in October, easing prices for the local industry and providing official agencies a sufficient room to continue with a liberalized trade regime.
The ministerial committee discussed the availability of yarn for local buyers in the face of surging exports. Some quarters in the textile industry were pushing the government to ban yarn export, or at least tax it, after prices surged to an all time high level in late October.
But officials, both at textile and agriculture ministries, continued to maintain that any such move would deprive cotton grower of an opportunity to get a reasonable return by exposing to a exploitation by industrialists.
Official sources at the MINTAX told the meeting that that figures compiled by Trade Development Authority of Pakistan (TDAP) have suggested a substantial decrease in exports during the month of November. Quoting from the TDAP's report, the official informed that about 300 thousand tonnes of yarn has been sold to buyers outside Pakistan during the period of past five months between July and November.
Meeting was attended by Mr. Nazar Muhammad Gondal, Federal Minister for Food and Agriculture, Ms. Hina Rabani Khar, State Minister for Finance, Mr. Zafar Mahmood, Secretary, Ministry of Commerce, Mr. Abdul Ghaffar Soomro, Secretary, Industries and Production, Mr. Muhammad Zia-ur-Rehman, Secretary, Food and Agriculture, Mr. Muhammad Saleem Khan, Secretary, Investment, Rao Manzar Hayat, Secretary, Industries Government of Punjab, Dr. S.M. Younus, Member, Planning Commission, Mr. Munir Qureshi, Member Customs, Federal Board of Revenue, Mr. Ahmed Hussain, Joint Secretary, Ministry of Finance, Mr. Tahir Hussain, Commissioner, Faisalabad and Mr. Mohid Ullah Shah, CE, TDAP and officers of Ministry of Textile Industry participated in the meeting.
