Karachi, March 17, 2021: Despite the shortage of cotton, cotton yarn, and gas in our country, Cotton yarn exports increased by 35.86 percent in quantity terms during February 2021 and remained at 44,419 metric tons compared to 32,694 metric tons during January 2021 which is a low value-added product and is actually just export of local cotton and local energy, both of which are short in our country.
These essential raw materials and resources could be converted into high-value added products like garments for export to earn more foreign exchange and generate more employment.
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It is an irony that the value-added products of knitwear, bedwear, towel, and readymade garments have witnessed a decline of 26.14, 7.35, 11.36, and 0.42 percent respectively in February 2021 compared to January 2021 as per the statement showing exports selected commodities during the month of February 2021 of the Pakistan Bureau of Statistics (PBS).
To immediately control the declining trend in wake of the severest ever shortage of cotton yarn which is the basic raw material, the Government should immediately place a ban on the export of cotton yarn and abolish the existing 5 percent customs duty on the import of cotton yarn below 40 single counts and allow its import from all over the world including India for at least next 4 months to stabilize and sustain exports of value-added products to earn valuable foreign exchange for our beloved country.
This was stated by Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum and Former Central Chairman, Pakistan Hosiery Manufacturers & Exporters Association.
Cotton Yarn prices have been increased by 40 percent and even at this exorbitant price cotton yarn is not available. The situation has also compelled the exporters not to take further new orders and for this reason, such export orders meant for Pakistan shall be diverted to other regional countries.
The further dollar has depreciated against Pak Rupees by 7 percent which is also a matter of concern for exporters which leads to a liquidity crunch. The Value Added Garment & Home Textile exporters are suffering from both sides, therefore, Government must support and facilitate the Value Added Garment & Home Textile exporters on a war footing basis.
It is pertinent to mention that Value-added textile exports contribute to around 62 percent of total exports, provide 42percent urban employment particularly to the female workforce who mostly are widows and orphans, earn the highest foreign exchange, and supports approx. 40 allied industries.
The gravity of the situation and declining trend in textile exports demands immediate attention and intervention of the Government to place a ban on the export of cotton yarn and abolish the existing 5 percent customs duty on import of 100 percent cotton yarn below 40 single counts and allow its import from all over the world including India for at least next 4 months in the best interest of value-added products export, employment, and foreign exchange earnings.
