Prime Minister Set to Announce New Textile Policy Soon

The National Assembly was informed on Wednesday that the Prime Minister will soon announce a new textile policy, which is expected to include a proposal to exempt the 11% sales tax currently imposed on domestic cotton production. During the National Assembly’s session, Parliamentary Secretary Zulfiqar Ali Bhatti, responding to a question by Sharmila Faruqi, stated that the new textile policy will be unveiled within the next couple of months. He emphasized that the Prime Minister himself will make the announcement. Bhatti pointed out that the country is importing more cotton than it produces domestically. He said the 11% sales tax imposed by the Federal Board of Revenue (FBR) on locally produced cotton should be reduced in order to boost domestic production and address the imbalance between imports and exports. Responding to a question by Rai Hassan Nawaz, Bhatti informed the House that the government has formed the National Export Board, which includes representation from all four provinces. He added that new policies on tariffs, e-commerce, and other trade matters will be introduced soon. Bhatti also clarified that there has been no decline in the country’s textile exports; rather, there has been a 9.3% increase. However, he acknowledged that rising electricity and gas prices have led to higher textile prices in the local market, adding that price control does not fall under their direct responsibility.