Cotton Mills Start Losing Rs. 1 Crore Daily

Cotton fumigation operations have effectively come to a halt in Pakistan after a clearance dispute over imported Methyl Bromide, leaving around 400-500 containers of imported cotton stranded at the port and causing losses of more than Rs.

Key points

• 49/2026 issued on May 19, 2026 classified the product under PCT code 2903.6100, making it subject to 18 percent sales tax.
• As an emergency one-time measure, APTMA has proposed that the Methyl Bromide consignment be published provisionally under Section 81 of the Customs Act, 1969.
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• Around 400-500 containers of imported cotton have reportedly been stuck at the port for more than a week.
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APTMA has pressed the administration to immediately resolve the matter, warning that the disruption could create raw-material shortages, delay export orders and hurt Pakistan's textile export earnings.

Notably, the matter arose after a change in the customs classification of Methyl Bromide. According to APTMA, the chemical was previously cleared under PCT code 3808.9170 and exempt from sales tax.

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Nevertheless, Public Notice No. 49/2026 issued on May 19, 2026 classified the product under PCT code 2903.6100, making it subject to 18 percent sales tax.

APTMA remarked a consignment imported by National Chemicals under GD No. KPPI-HC 8681-66-08-2026 has remained uncleared since of the classification dispute.

In practice, the association remarked the problem has gone beyond the Methyl Bromide consignment itself and has effectively blocked the clearance of imported cotton that requires fumigation.

Around 400-500 containers of imported cotton have reportedly been stuck at the port for more than a week. Textile mills are now facing demurrage and other related costs exceeding Rs. 10 million every day.

APTMA remarked imported cotton is a critical raw material for export-oriented textile products and prolonged delays could result in shortages at mills, disrupt production and threaten the timely execution of export orders.

Meanwhile, the association additionally cautioned that continued disruption could damage Pakistan's export earnings and international credibility.

As an emergency one-time measure, APTMA has proposed that the Methyl Bromide consignment be published provisionally under Section 81 of the Customs Act, 1969. FBR Catches Importers Misdeclaring Fabric to Obtain Duty-Free Benefits.

Alternatively, it has requested that the administration allow the affected cotton consignments to be issued without fumigation as a one-time measure, subject to undertakings from industrial users confirming that the imported cotton is free from pest infestation.

APTMA has pressed immediate administration intervention to restore cotton clearance and prevent further losses to the textile industry and Pakistan's exports. Stay Connected with ProPakistani.

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Taken together, the developments around cotton Mills Start Losing Rs. 1 Crore Daily point to a situation that is still moving, and the coming days should bring more clarity.