On 20 April 2016, the Pakistani National Tariff Commission initiated an anti-subsidy investigation on imports of fine cotton yarn from India (Notice C.V.D No. 01/2016/NTC/CY). The products subject to investigation are classified under the following HS code subheadings: 5205.15.00, 5205.27.00, 5205.28.00, 5205.35.00, 5205.47.00 and 5205.48.00. This investigation follows the application lodged on 22 February 2016 by All Pakistan Textile Mills Association on behalf of seven producers of fine cotton yarn. An anti-dumping investigation on imports of the same product from India was launched in August 2015, see related measure.
 
On 18 January 2017, the Pakistani National Tariff Commission imposed a provisional countervailing duty on imports of the subject good from India. The rate of duty is between Pakistani rupees 26.89 and 55.80 per kg (USD 0.26 and 0.53 per kg). The duty is in force for a period of four months.

On 18 October 2017, the Pakistani National Tariff Commission terminated the anti-subsidy investigation without the imposition of duties.