KARACHI: To ease the commodity crisis, value-added textile sector associations asked the government on Tuesday to impose an immediate ban on the export of cotton yarn. They also suggested a 10% duty on cotton yarn exports, claiming that if enforced, the proposal would help to reverse the downward trend in apparel textile exports.
The organisations have asked the government to allow duty-free imports of cotton yarn from around the world for at least the next six months in order to alleviate the local market’s ongoing commodity crisis. Representatives of various apparel textile associations addressed their proposals and demands to Adviser to Prime Minister on Commerce Razak Dawood during a meeting held virtually on Tuesday.
Globally, the prices of cotton have decreased but the commodity is still costlier in Pakistan. Announcement of ECC proposal to allow import of cotton yarn from India had temporarily helped reduce the cotton yarn prices in the local market, but the cancellation of trade with the neighboring nation again spurred the commodity rates to the higher levels, they said.
They demanded of the government to open an immediate forensic audit of local cotton yarn producers, similar on the pattern of sugar probe.
“It is learned that approximately two million bales have been sold without sales tax and invoices in the local market, in order to identify the black-sheep and culprits behind the yarn crisis,” the associations asserted.
The value added textile exporters are facing jeopardy and financial hardships as their cost of manufacturing has outgrown because the dollar depreciation against Pak rupee from 164 to 153 and increase in prices of cotton yarn more than 40 percent and 700 percent increase in sea freight charges, they said.
Country is facing approximately 40 percent low cotton crop, which is the lowest quantity over the past three decades, they said adding that “therefore, the government must devise most urgent mechanism and policy to increase cotton produce as the cotton cultivation period is started in the country.”
They said the government should also help facilitate apparel makers to import cotton yarn from Central Asian Republics through land route via Afghanistan as the sea route is taking a long duration due to shortage of containers and vessels.
It will help bring a positive impact for textile export of Pakistan to reach at the level of Bangladesh textile within next few years, they said. They also requested to the adviser to speed up the release of payments of DLTL / DDT claims to support the textile export industry and demanded rates of gas (RLNG) should be same for new industrial units around the country.
Those attended the online meeting included: Jawed Bilwani, chairman Pakistan Apparel Forum, Riaz Ahmed central chairman, Faisal Mehboob Shaikh senior vice chairman, Tariq Munir vice chairman Pakistan Hosiery Manufacturers & Exporters Association, Mian Farrukh Iqbal senior vice chairman, PHMA Northern Zone, Ch Salamat Ali ex-central chairman, Syed Zia Alamdar ex-chairman, Kashif Zia, ex-chairman PHMA, Ijaz Khokhar chief coordinator & ex-central chairman Pakistan Readymade Garment Manufacturers & Exporter Association, Aamir Lari vice chairman, Haroon Shamsi ex-chairman Towel Manufacturers Association of Pakistan, Eng Bilal Jamil senior vice chairman, Arif Malik ex-chairman All Pakistan Bedsheets & Upholstery Manufacturers Association, Waheed Khaliq Ramay of Power Looms Owners Association and Engr Hafiz Ihtasham Javed president Faisalabad Chamber of Commerce & Industry.
Razak Dawood assured textile exporters of his support in response to their demands and suggestions. He went on to say that the concerned ministry will make all decisions after consulting with stakeholder groups.
He took note of textile exporters’ suggestions and demands to allow duty-free imports of cotton yarn, enforce a ban on cotton yarn exports, or impose a 10% duty on cotton yarn exports.
According to the associations present at the meeting, he claimed that the commerce ministry has taken serious note of the situation and will respond within the next few days.
