Difficulties for the textile industry in Faisalabad have intensified following the announcement of the federal budget.
According to details surfaced on Thursday, the imposition of an 18% sales tax on imported yarn under the Export Facilitation Scheme (EFS) has led to a significant surge in the prices of local yarn in the Sootar Mandi.
Yarn prices in the local Sootar Mandi have increased by up to 20% due to the new tax measures.
The increase in yarn prices will adversely affect powerloom operations across the region.
