‘Yarn export will benefit Pakistan’s competitors’
PHMA says there is already shortage of cotton and yarn in domestic market
PHOTO: REUTERS
FAISALABAD:
Despite assurances that the government would not allow export of yarn, the media campaign by the Textile Division has hurt the entire value-added textile sector, said a body of hosiery manufacturers and asked the government to reverse the decision to save national exports from another crisis.
Calling it an anti-industry move, Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Senior Vice Chairman Mian Kashif Zia pointed out that against initial estimates of 15 million bales of cotton, the country harvested only 10 million bales in the current season.
“It has already created a shortage of cotton and yarn in the domestic market, while the export of yarn will aggravate the situation,” he said. Zia said it would be tantamount to discouraging the value-added sector as the raw material from Pakistan would be exported to international competitors.
Faisalabad Chamber of Commerce and Industry (FCCI) President Syed Zia Alumdar Hussain recalled that a meeting of the task force for development of textile sector was held on March 30 with Adviser to PM on Commerce and Industry Razak Dawood in the chair. “By exporting yarn, we are only exporting the relief provided in the shape of subsidised electricity and gas, remarked Hussain.
He said though the government had assured businessmen that sales tax refund claims would be released through negotiable promissory notes,no progress had been made so far.
“I have requested Zafar Iqbal Sarwar, Coordinator to PM Adviser on Textile, to take their message immediately to the prime minister and ask him to intervene and take immediate action to discourage the export of raw material.”
Furthermore, he said, the government should withdraw 10% regulatory duty on yarn and 52% duty on polyester in order to give a boost to manufacturing activities.
“There was complete consensus that government will focus on textile sector,” said Coordinator to PM Adviser on Textile Zafar Iqbal Sarwar.
Published in The Express Tribune, April 16th, 2019.
Despite assurances that the government would not allow export of yarn, the media campaign by the Textile Division has hurt the entire value-added textile sector, said a body of hosiery manufacturers and asked the government to reverse the decision to save national exports from another crisis.
Calling it an anti-industry move, Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Senior Vice Chairman Mian Kashif Zia pointed out that against initial estimates of 15 million bales of cotton, the country harvested only 10 million bales in the current season.
“It has already created a shortage of cotton and yarn in the domestic market, while the export of yarn will aggravate the situation,” he said. Zia said it would be tantamount to discouraging the value-added sector as the raw material from Pakistan would be exported to international competitors.
Faisalabad Chamber of Commerce and Industry (FCCI) President Syed Zia Alumdar Hussain recalled that a meeting of the task force for development of textile sector was held on March 30 with Adviser to PM on Commerce and Industry Razak Dawood in the chair. “By exporting yarn, we are only exporting the relief provided in the shape of subsidised electricity and gas, remarked Hussain.
He said though the government had assured businessmen that sales tax refund claims would be released through negotiable promissory notes,no progress had been made so far.
“I have requested Zafar Iqbal Sarwar, Coordinator to PM Adviser on Textile, to take their message immediately to the prime minister and ask him to intervene and take immediate action to discourage the export of raw material.”
Furthermore, he said, the government should withdraw 10% regulatory duty on yarn and 52% duty on polyester in order to give a boost to manufacturing activities.
“There was complete consensus that government will focus on textile sector,” said Coordinator to PM Adviser on Textile Zafar Iqbal Sarwar.
Published in The Express Tribune, April 16th, 2019.