Textile units may need NOC for subsidies over unpaid cotton cess

Textile units with unpaid cotton cess may soon require a No Objection Certificate (NOC) from the Pakistan Central Cotton Committee (PCCC) to access government subsidies, import and export permits, and incentive packages. 

The proposal was discussed at the PCCC governing body meeting on Thursday, chaired by Minister for National Food Security and Research Rana Tanveer Hussain.

The meeting discussed several key issues in detail, including the longstanding cotton cess dispute between the PCCC and the textile industry, as well as the overall restructuring of the PCCC. 

To address the cotton cess issue, the the minister proposed the formation of a special committee comprising representatives from PCCC, APTMA, and the Ministry of National Food Security & Research. 

The committee is tasked with formulating a practical and mutually agreeable resolution within two weeks for presentation at the next meeting.

An alternative plan to recover the cess through the Federal Board of Revenue (FBR) was also considered. 

Additionally, the federal government was urged to provide funding for research, development, and establishment-related expenses to stabilize the PCCC’s operations.

The minister expressed concern over an eight-year delay in resolving cess-related disputes, which has weakened PCCC’s capacity to support cotton research and development. Immediate actions were proposed to address the issue, recover outstanding dues, and restore financial stability to the organization.

Dr. Yusuf Zafar, Vice President of PCCC, urged APTMA Chairman Kamran Arshad to ensure the textile industry resumes regular payment of the cotton cess from January 2025 onwards. Chairman Kamran Arshad assured compliance, a commitment that was welcomed by the forum.

The Board further recommended the swift announcement of a support price for cotton to aid in the sector’s revival. 

A representative from the Textile Commissioner’s Office provided updates on a collaborative initiative with the Ministry of Commerce and FBR to enhance cotton traceability, which will help accurately assess domestic cotton production and address data discrepancies.

To chart a sustainable recovery path for the cotton industry, the Ministry of National Food Security and Research, in collaboration with the Commerce Ministry, plans to host a National Cotton Conference in Multan on February 4, 2025. The conference aims to bring together stakeholders to formulate long-term strategies for the sector’s growth.