Textile exporters have expressed fear that they will continue to experience production issues as a result of cotton and yarn shortages, as well as a price increase.
They urged the government to enable duty-free imports of the two commodities via land route from Turkey, India, and Uzbekistan.
In a statement issued on Tuesday, Senior Vice Chairman Hanif Lakhany of the Pakistan Yarn Merchants Association (PYMA) asked Prime Minister Imran Khan to take steps to reduce the cost of manufacturing for the value-added textile industry.
The Pakistan Yarn Manufacturers and Traders Association (PYMA) has urged the government to take bold steps to end the shortage of raw material and arrest the hike in prices of cotton yarn. PYMA office-bearers said that exporters were reluctant to accept new orders due to difficulties in procuring basic raw material.
The value-added sector of Pakistan’s economy is facing immense difficulties due to shortage and hike in prices of cotton and yarn. The price of cotton yarn had hit record levels due to its unavailability, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Committee on Yarn Convener Farhan Ashrafi said. He appealed to Prime Minister Imran Khan to help exporters fulfil the present export orders in time and secure new orders.
The price of cotton yarn has hit record levels due to its unavailability and a surge in freight costs, an analyst has told the Express Tribune. Arsalan Hanif said that approval of the import of raw material from India was highly unlikely until the unilateral decision taken by India on August 5, 2019 was reconsidered.
According to Arif Habib Limited analyst Arsalan Hanif, textile industries are now running at full capacity due to large export orders, but a lack of cotton and a rise in freight costs are impeding smooth operation. “The two-pronged problem has resulted in inefficiency in the value-added production process and a loss of possible orders,” he explained.
