According to Pakistan’s “Business Record” report, Pakistan’s Finance Minister Abdul Hafiz Sheikh recently chaired the 5th meeting of the Pakistan Cabinet Textile Committee to comprehensively evaluate the arrival of new cotton and cotton yarn production. , export trends and the supply of cotton yarn in the high value-added textile sector, it was decided to abolish the 15% cotton yarn export adjustment tax and implement a free market mechanism to calm disputes between the high value-added textile sector and the spinning industry.
According to reports, under repeated requests from the high value-added textile sector, the Pakistani government levied a 15% regulatory tax on cotton yarn exports from May 26, 2010, valid for 2 months, to ensure the production needs of the high value-added textile sector. Cotton yarn supply, but this move triggered strong opposition from the domestic spinning industry. The latter firmly demanded that the government abolish the tax to avoid further adverse effects on the textile industry.
