Karachi, March 02, 2021: In view of its significant importance in the economy and free market mechanism, the value added textile sector has asked the Government to allow the duty-free import of cotton yarn all over the world including neighbouring country to ensure availability of cotton yarn of good quality and place ban on export of cotton yarn of 30 single and below count till June 2021 ensuring availability of quality yarn on to facilitate export sector to complete their export orders without hassle and unrest.
The Value Added Textile Sector is continuously drawing the attention of the Government, through appeals and press statements, towards unavailability and shortage of cotton yarn since last five months but to no avail.
During the joint press conference on Tuesday, the leaders of the value added textile sector apprise that the exporters being aware about the gravity of situation with regards to unavailability of cotton yarn had timely taken the matter with the Government without any favourable response and considerations till date. The crisis of cotton yarn is aggravating due to lack of attention by the Government. Earlier, On 25th Oct, 2020 Value Added Textile Exporters highlighted the issue of unavailability of cotton yarn.
The press conference was conducted by Muhammad Zubair Motiwala, Chairman, Council of All Pakistan Textile Associations, Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum, Riaz Ahmed, Central Chairman, Pakistan Hosiery Manufacturers & Exporters Association, Aamir Lari, Vice Chairman, Towel Manufacturers’ Association of Pakistan, Sh. Shafiq, Former Chairman, Pak Readymade Garments Manufacturers & Exporters Association, Kamran Chandna, Former Chairman, Pakistan Knitwear & Sweaters Exporters Association, Abdus Samad Shekhani, Chairman, Pakistan Cloth Merchants’ Association, Rehmat Naveed Elahi, Chairman, Pakistan Bedwear Exporters Association, Tariq Munir, Chairman, Pakistan Hosiery Manufacturers & Exporters Association, Danish Javed, Vice Chairman, Pakistan Bedwear Exporters Association, Abdul Hadi, President, SITE Association of Industry.
They said that some 4.5percent decrease in exports endorse the view point of exporters that unavailability of cotton yarn will shatter the export orders in hand which will eventually be diverted to other competing countries if the cotton yarn is not made available in required quantity.
The Government is cautioned about the dire consequences and appealed to allow duty free import of cotton yarn and place ban on export of cotton yarn in order to save the exports, industries and employment.
They said that the bonus falls on the Government to decide whether they want to enhance exports or otherwise tell the export industries to close down? The exporters are highly annoyed that upon crisis of wheat and sugar, the Government has allowed duty free import of wheat and sugar and placed ban on their export on one hand and while on the other hand the Government has closed its eyes wide shut towards to looming cotton yarn crisis which is extremely deplorable and discriminatory conduct on part of the Government.
Lack of cotton yarn’s simply means decline in value added textile exports. Although decrease in cotton crop is a factor which has created a shortfall, however, the demand against the supply is also increased as the pakistani exporters have struggled hard to achieve no export orders and for this reason, the exports have been increased during last six months.
They said that the exporters also lamented that whenever the value added textile industry takes off with its full potential, some adverse thing happens and all the hard efforts of exporters are opposed and put at stake due to some anti-exports move from the Government side, like previously announcement of disconnection of Gas to captive power plants of export industries which depicted a bleak picture of pakistani exporters in eyes of foreign buyers worldwide and now the government’s thoughtlessness towards allowing duty free import of cotton yarn will push the export industries towards disaster.
The textile exporters are also highly perturbed over the dubious dealings of spinners who have taken advance payments with commitments to supply cotton yarn but have dishonoured their commitment to supply cotton yarn and if yarn being supplied is of sub-standard quality.
Aggrieved textile exporters from all over Pakistan have approached the Associations for agitation in order to save their industries. The Government is finally appealed to accord genuine priority to value added textile sector and immediately allow duty free import of cotton yarn through Presidential Ordinance or Act of Parliament failing which the Government shall be responsible for the unrest in exporters which will lead to countrywide protest, they added.
On 26th Oct 2020, Mr. Abdul Razak Dawood, Advisor to Prime Minister on Commerce & Textile called zoom meeting to discuss yarn issue. On 2nd, 6th & 11th Nov, 2020 Value Added Textile Exporters issued Press Appeals that Textile exporters unable to finalize their export orders due to unavailability of cotton yarn and demanded duties and taxes free import of cotton yarn. On 23rd Dec, 2020.
They said that government removed only regulatory duty not custom duty and taxes. On 6th Jan, 2021 vide press statement value added textile exporters demanded to also remove custom duty and taxes on import of cotton yarn and put ban on export of cotton yarn due to severe cotton yarn crisis. On 9 Feb, 2021, Mr. Abdul Razak Dawood, Advisor to Prime Minister on Commerce & Textile called zoom meeting whereby value added textile exporters informed that the cotton yarn shall be available only when custom duty and taxes on import of cotton yarn are abolished by the Government, otherwise export will decrease.
Advisor gave patient hearing and assured that he will take up the matter with the Prime Minister and Cabinet. So far no affirmative considerations have been given by the Government while during this period. Resultantly, Exports declined by 4.5% in Feb 2021 over Feb 2020 and Government is responsible for this decrease.
The Value-Added Textile Associations demanded to Prime Minister of Pakistan to take instant cognizance of the situation which is leading towards complete diversion of the PM’s vision for industrialization, increasing exports, creating trade surplus, generation of employment opportunities and earning precious foreign exchange shall become possible only when raw material – cotton yarn and uninterrupted supply of utilities is ensured on special tariffs approved for export-oriented industries.
The Value-added Textile Exporters are highly worried over the unavailability of cotton yarn – which is basic raw material in the local market despite huge export orders are available with the value added textile.
In view of its significant importance in the economy and free market mechanism, the Government must consider the appeal of value-added textile sector for duty-free import of cotton yarn all over the world including neighbouring country to ensure availability of cotton yarn of good quality and place ban on export of cotton yarn of 30 single and below count till June 2021 ensuring availability of quality yarn on to facilitate export sector to complete their export orders without hassle and unrest.
