Cotton Mills Start Losing Rs. 1 Crore Daily

Pakistan's cotton mills are experiencing daily losses exceeding Rs. 1 crore as fumigation operations have come to a standstill due to a dispute over the import of Methyl Bromide, according to the All Pakistan Textile Mills Association (APTMA). Around 400-500 containers of imported cotton are currently blocked at the port, leading to significant financial setbacks for the textile industry.

The APTMA has urged the government to promptly resolve the issue, highlighting that the disruption could result in raw-material shortages, delayed export orders, and a decline in Pakistan's textile export earnings. The dispute stems from a change in the customs classification of Methyl Bromide. Previously cleared under PCT code 3808.9170 without sales tax, the chemical is now subject to an 18 percent sales tax under PCT code 2903.6100, issued through Public Notice No. 49/2026 on May 19, 2026.

A consignment imported by National Chemicals remains stuck because of the classification dispute, causing a domino effect that blocks the clearance of other imported cotton requiring fumigation. Textile mills are now burdened with demurrage and related costs surpassing Rs. 10 million daily, jeopardizing production and export schedules.

The APTMA has proposed provisional release of the Methyl Bromide consignment under Section 81 of the Customs Act or allowing affected cotton consignments to be released without fumigation, contingent upon undertakings from industrial users confirming pest-free status. The association emphasizes the urgency of government intervention to restore cotton clearance and avert further losses to the textile sector and Pakistan's exports.