KARACHI: Commenting on slapping enhanced duties of the US on products of China, Canada and Mexico, Pasban Democratic Party PDP Chairman Altaf Shakoor here Sunday asked the government of Pakistan also to protect its own crops and products by rationalising taxes and duties.
He said the cotton and yarn sector in Pakistan is a glaring example of giving incentives of imported cotton and yarn at the cost of locally produced cotton. He said no other country in the world allows import of cotton free from duties and sales taxes. He said that imported duty-free and sales tax-free yarn is being sold in the domestic market and our Pakistani products could not compete with them.
He said that the All Pakistan Textile Mills Association (APTMA) has been demanding from the federal government for immediate restoration of the Export Finance Scheme (EFS) to its pre-Finance Act 2024 form that allowed the sales tax exemption and zero-rating on all local supplies used for export manufacturing. Pakistani mills are facing tremendous losses and closure due to misuse of the EFS, under which import of cotton and blended yarns are exempted from sales tax and duties. He said in Pakistan local cotton farmers are being punished to make room for the imported cotton and yarn. This is a rare example of promoting foreign goods on local taxpayers money.
He said as there is no duty and sales tax under the yarn imports under EFS, import of yarn increased by 254 percent during November 2024 compared to January 2024, under the pretext of being used in the export of textile products.
Altaf Shakoor demanded to protect local crops, farmers and consumers. The prices of sugar are on a higher side because the government allowed export of Pakistani sugar instead of allowing a surplus stock in the country to compel powerful sugar millers to reduce prices for benefits of consumers.
Altaf Shakoor said the government takes decisions due to the pressure of powerful lobbies of millers, traders and bankers sitting in Parliament. Foreign loans are another reason why the government allows more incentives to imports at the cost of local produce. He said the government should take rational decisions keeping in mind the interests of Pakistan and Pakistanis. He said if our rulers want to become true patriots in terms of protecting the local economy they should learn a lesson from the new US president Trump, who is fighting tooth and nail to protect the US economy.
