Pakistan Puts 5% Duty on Cotton-Yarn Import
According to Pakistani news of April 26, with India-made cotton yarn swarming in, the Pakistani government has begun to levy 5% duty on the cotton-yarn import.
A significant increase in import of cotton yarn makes Pakistani domestic enterprises under tremendous pressure. In fiscal year 2010, the international cotton market and the sharp rise in prices of downstream products, cotton yarn exports from Pakistan have increased; to reduce the cost of raw materials for downstream industries, the Pakistani government decided to abolish import duty on cotton yarn, while giving export quota management. In 2011 fiscal year, due to the supply-demand relation tends to be normal, the government canceled the export duty and quota management but did not restore the import duty, while India and China still levied 10% and 5% import duties.