Industrialist proposes enhanced US cotton imports in exchange for tariff concessions

MULTAN, (APP - UrduPoint / Pakistan Point News - 23rd Jul, 2026) Chairman Multan Dry Port Trust (MDPT) and former president Multan Chamber of Commerce and Industry (MCCI) Khawaja Muhammad Hussain, on Thursday underlined the need for further strengthening bilateral trade relations with the United States.

In a press statement issued here, the veteran industrialist suggested enhanced cotton imports from the US in exchange for tariff concessions on Pakistani exports, saying such an initiative could significantly boost the country's textile sector and overall economy.

Pakistan had a valuable opportunity to deepen economic relations with the United States through a mutually beneficial trade arrangement.

He proposed that Pakistan import larger quantities of US cotton to help secure relief in tariff on Pakistani exports, particularly textiles.

He said countries such as Bangladesh and Indonesia had successfully pursued similar trade strategies.

Khawaja Muhammad Hussain said that Pakistan exports around $6.2 billion worth of goods to the United States annually, including about $4.7 billion in textile products.

Observing that domestic cotton production had declined sharply from 14 million bales to just 5.6 million, against textile industry requirement of nearly 16 million bales, it was prudent to increase cotton imports to meet its production needs.

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He also expressed concerns over high production costs which he added were discouraging new investments.

He said, manufacturing remained the backbone of Pakistan's economy and was essential for generating employment and proposed relief measures aimed at ease of doing business.

He pointed out that the corporate tax rate stood at 29 per cent, while the overall tax burden on registered businesses reached nearly 50 per cent after including other taxes and levies.

He further stated that the industrial sector was paying around 13 US cents per unit for electricity, making energy costs among the highest in the region and reducing the competitiveness of Pakistani manufacturers in international markets.

He appealed the government to reduce energy and taxation costs for industries to levels comparable with regional competitors, conclude an effective cotton and textile trade agreement with the United States, and extend stronger support to small and medium-sized enterprises (SMEs) to enhance exports, expand market access, promote industrial growth and create employment opportunities.

He hoped these measures would play a vital role in economic recovery, investment promotion and reducing unemployment.