Textile sector facing raw material shortage

Textile exporters have urged the government to abolish customs and regulatory duties on the import of cotton yarn, citing that apparel and home textile sectors are facing shortage of basic raw material, which may lead to a drastic decline in textile exports.

A huge number of export orders are being received by the value-added knitwear industry, however, exporters are unable to finalise them due to unavailability of cotton yarn at competitive prices in the country.

It was stated by Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Zonal Chairman Faisal Mehboob Sheikh and Chief Coordinator Adil Butt in a joint statement on Friday.

Sheikh requested the government to remove restrictions on duty-free import of cotton yarn from all neighbouring countries in order to encourage exporters to compete in the international market.

“Our value-added knitwear sector is facing immense pressure from high cost of doing business, rising utility rates and several other problems,” he said.

Sheikh lamented that a huge number of weaving units had already closed down and higher prices coupled with unavailability of cotton yarn would damage value-added textile exports, which would result in closure of a large number of export-oriented units.

He stressed the need for amending rules, simplifying tax laws and automating business processes to steer transparency in the system to facilitate small and medium businesses in the value-added knitwear industry in a bid to boost exports. He called for implementing the vision of Prime Minister Imran Khan in a true spirit by simplifying export schemes.