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LAHORE: In an unprecedented crisis for Pakistan’s textile backbone, several cotton ginning factories in Tando Adam and other key towns have begun shutting down just one month after becoming operational, marking a devastating first in the country’s history.
The sudden shutdowns result directly from the federal government’s failure to reduce the crushing 18 per cent sales tax on the cotton ginning sector in the recent federal budget.
This legislative oversight has triggered a historic crash in domestic cotton prices, sending shockwaves of anxiety through farmers and millers nationwide while threatening the very survival of the local industry.
Representatives from the All Pakistan Textile Mills Association (Aptma) and cotton ginners had met with top ministry officials prior to the budget to plead for relief from the heavy tax burden.
