KARACHI: Commenting on the recent imposition of increased duties by the United States on products from China, Canada, and Mexico, Altaf Shakoor, Chairman of the Pasban Democratic Party, urged the Pakistani government to protect its domestic products by adjusting taxes and duties.

According to a statement by Pasban Democratic Party, Shakoor highlighted the plight of Pakistan’s cotton and yarn sector, which faces challenges due to incentives for imported cotton and yarn that undermine local production. He pointed out that no other country permits duty-free and tax-free import of cotton, which is adversely impacting the competitiveness of Pakistani products in the domestic market.

Shakoor noted that the All-Pakistan Textile Mills Association (APTMA) has been appealing to the federal government to reinstate the Export Finance Scheme (EFS) to its previous version before the Finance Act 2024. The previous scheme allowed sales tax exemption and zero-rating on local supplies used in export manufacturing. The current misuse of the EFS is reportedly causing significant financial losses for Pakistani mills, as it permits duty-free import of cotton and yarn.

He expressed concern over the rise in yarn imports, which allegedly increased by 254 percent from January to November 2024, purportedly for textile export purposes. Shakoor called for measures to protect local farmers and consumers, citing the example of high sugar prices due to the export of Pakistani sugar rather than maintaining a surplus domestically.

Shakoor attributed government decisions to the influence of powerful lobbies and foreign loan conditions, which he claimed favor imports over local production. He urged the government to prioritize national interests, drawing a parallel with former US President Trump’s efforts to bolster the US economy.