The Ministry of Textile has decided to restrict the export of cotton yarn to ensure easy availability of the commodity in the domestic market at reasonable rate. Sources said the ministry would soon move a summary to the Cabinet for imposing ceiling on the export of cotton yarn.
They said the ministry has taken this decision after meeting with the stakeholders of the value added textile industry and cotton yarn exporters particularly the spinners. Two different meetings on cotton yarn issue were held at Islamabad on Wednesday, chaired by minister for textile industry Rana Farooq Ahmed Khan, after which the minister informed the spinners that the ministry is likely to impose ceiling on cotton yarn export.
Sources said the Senate Committee on Textile, which held a meeting on Thursday at Islamabad, has also decided to recommend restricted export of cotton yarn. The National Assembly Committee on Textile in its last meeting has already recommended limited export of cotton yarn.
"The Ministry of Textile will recommend that the federal government should impose a ceiling on the export of cotton yarn, which would be not more than the last three years' average export," they added. Rana Farooq has also conveyed this decision to the spinners saying that the government is being forced to permit only quota-based export of cotton yarn after the rising prices of the commodity in the local market.
"We have been informed by the textile minister after the meeting that the ministry is going to introduce a quota-based export of cotton yarn and a summery would be moved to the Cabinet in next two days," a participant of the meeting told Business Recorder.
He said it would be a 'costly' mistake of the government, which would push up the already climbing Non Performing Loans of the banking sector, as after the imposition of quota, mills would be forced to limit their businesses. He said, "it would be a political rather than economic decision and eventually the government would surfer."
Comments
Comments are closed.