Pakistan Cancelled 15% Export Regulatory Duty on Cotton Yarn

According to a report on July 27, 2010 from a Pakistani media, Finance Minister of Pakistan, Abdul Hafiz Sheikh, recently decided to abolish the export regulatory duty of 15% on cotton yarn and implement free-market mechanism so as to settle the dispute between the high value-added textile authorities and the spinning industry.

As per the report, under the pressing of the high value-added textile authorities, as from May 26, 2010, the Pakistani Government levied a regulatory duty of 15% on the export of cotton yarn with a period of 2 months to ensure the supply of cotton yarn for the production of the high value-added textile authorities.

However, this move triggered strong opposition from the domestic spinning industry, who insisted on the Government canceling the duty in order to avoid further adverse effects on the textile industry.