KARACHI: The government has abolished five percent regulatory duty on yarn import amid anticipated shortage of the industrial input on falling cotton output in the country.
The Economic Coordination Committee (ECC) of the cabinet decided to remove the regulatory duty on import of cotton yarn till 30 June next year during a meeting presided over by Adviser to the Prime Minister on Finance and Revenue Hafeez Shaikh.
Commerce Adviser Razak Dawood said the duty withdrawal will facilitate the exports of apparel sector.
“This is in line with our policy of getting more value-added exports,” Dawood said in a tweet. “The ECC decision will go the cabinet for ratification after which it will be notified.”
Cotton crop was severely damaged due to torrential rainfalls this year. It is estimated that the cotton production would be in the range of 6.5 to 8 million bales against the local textile sector’s requirement of 14 to 15 million bales.
ECC recommended a summary for release of funds to Pakistan Steel Mills for payment in lieu of gas supply to Sui Southern Gas Supply Company (SSGC) through a technical supplementary grant.
Allocation of up to 9.5 million metric cubic feet/day (mmcfd) gas from Pakistan Petroleum Limited’s Benari X-I discovery to SSGC was approved. Similarly, allocation of 10 mmcfd gas from Hadaf X-I to SSGCL was also approved during the meeting. After Minister for Maritime Affairs Ali Zaidi raised the issue, the ECC directed the logistics committee to ensure berthing of wheat and sugar vessels on priority basis, keeping in view other imports are not affected.
The ministry of commerce submitted a summary to reconsider the earlier decision taken by ECC in October regarding procedure for registration under concessionary regime of electricity, re-gasified natural gas and gas in export-oriented sectors, erstwhile zero-rated sectors. After due deliberation, the ECC directed the officials to maintain status quo with a condition that the Federal Board of Revenue might register new manufacturers or exporters in the regime in coordination with the ministry.
ECC also accorded approval for allocation of additional funds for maintenance of Islamabad High Court Building and Judges Residences through technical supplementary grant as requested by the ministry of housing and works.
The ECC deferred agenda item on Karachi Transformation Plan with an estimated cost of Rs739 billion, to the next meeting for a detailed discussion.