Pakistan, April 8 -- The federal government is moving forward with a plan to remove the 18% sales tax on local cotton, yarn, and grey cloth. This decision aims to support local products and make them more competitive against imports. A committee of federal ministers and secretaries discussed the proposal after multiple industry requests. Key stakeholders included the Pakistan Cotton Ginners Association (PCGA) and the All-Pakistan Textile Mills Association (APTMA).

Prime Minister Shehbaz Sharif will have the final say on this proposal in the coming days. Additionally, the government needs approval from the International Monetary Fund (IMF). If the plan goes ahead, local cotton prices could rise by up to Rs1,000 per maund. This change migh...