Pakistan produced barely 5.6 million bales in FY21. AFP/File
KARACHI: The country’s cotton imports hit $2.3 billion an increase of 44 per cent during July 2020-May 2021 (11MFY21) compared to the same period in the previous fiscal year.
The country produced barely 5.6 million bales in FY21. Despite higher orders and a number of incentives provided by the government to boost exports, poor cotton production and imported lint nullified the efforts of the textile sector.
However, instead of providing additional help to the cotton producing sector, Finance Minister Shaukat Tarin has increased sales tax on cotton to 17pc from the earlier 10pc. Cotton seed oil or banola, which earlier had zero tax, has been slapped with 17pc tax.