Tariff board to rationalise duties on non-cotton materials to boost textile diversification

The Tariff Policy Board (TPB), chaired by the Minister for Commerce, is preparing to rationalise customs duties on non-cotton yarns and fabrics as part of efforts to transition Pakistan’s textile sector toward man-made fibre (MMF)-based apparel and high-value exports, Business Recorder reported. 

The move follows the Ministry of Commerce’s recommendations to encourage production and investment in synthetic and artificial materials such as polyamide, polyolefin, polyethylene, and polyurethane. 

The ministry said greater domestic availability of these inputs would help reduce reliance on imported raw materials while enabling diversification into segments like sportswear, performance wear, and children’s apparel.

Cotton remains the backbone of Pakistan’s textile economy, yet declining yields and rising costs have eroded competitiveness. The Ministry of National Food Security and Research is finalising the National Cotton Plan 2025 to improve productivity and quality through new seed varieties and better farming practices.

Under the upcoming Textiles and Apparel Policy (2025–30), the Commerce Ministry aims to enhance exports, encourage local value addition, and diversify markets. The plan sets an export target of $30 billion by 2030, as endorsed by the National Export Development Board (NEDB).

Globally, man-made fibres now account for 74% of total fibre consumption, including 57% polyester and 6.7% polyamide. Pakistan’s industry, however, remains heavily cotton-based. The TPB’s tariff adjustments under the National Tariff Policy 2025 will support investment in MMF production to align with global demand.

The Ministry of Commerce has also launched the National Technical Textile Council to guide the sector’s shift toward technical and high-performance textiles, a market projected to exceed $300 billion globally by 2030. Officials said the initiative, along with sectoral councils, will strengthen public–private collaboration, improve policy alignment, and support innovation-driven growth in Pakistan’s textile exports.