ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet is to allow import of cotton and yarn through land route (including India) aimed at ensuring provision of raw material to the value-added sector at cheaper rates.
On Monday, PM’s Advisor on Commerce and Investment Abdul Razak Dawood got approval from Prime Minister Imran Khan to import cotton and yarn through land route (including India) to meet domestic demand and bring down the prices in domestic market.
According to Dawood, a meeting was held with the Prime Minister to discuss escalating prices of cotton yarn in the country, adding that the prime minister was sympathetic towards the value-added sector and advised that in order to ease the pressure on yarn and keep momentum of value-added exports imports from India would be necessary.
“All steps will be taken through cross-border imports of cotton including by land. A summary will be presented at the next ECC meeting to ensure availability of cotton and yarn in the coming months,” Dawood added.
Last week, Razak Dawood told Business Recorder that he had not talked to the prime minister on this issue as he is in isolation after testing positive for Covid-19, however, he sincerely hopes that trade with India will start again, adding that trade should be separated from politics.
On August 10, 2019, Pakistan imposed a ban on trade with India, due to rise of violations on Line of Control and Working Boundary and after New Delhi withdrew Most Favoured Nation (MFN) status from Pakistan after Pulwama incident. The bilateral trade of India and Pakistan was less than $2 billion, when both countries slapped a ban on trade with the other. However, Islamabad did import life- saving drugs from India.
In reply to a question, Dawood said decision on import of cotton from India through land route is expected soon and he will be according approval to the proposal.
Answering another question Dawood said he is not aware of the exact quantity that maybe allowed to be imported from India, adding that there should be restriction on quantity.
He contended that local price of cotton has increased too much and import from India will provide some relief to the industry.
Insiders claim that APTMA opposed proposal to import yarn from India because they have procured huge quantity and now want to sell at inflated prices. APTMA also wants a cap on the quantity imported.
Ministry of National Food Security and Research has supported import of one million bales but is silent on quantity of yarn.
The National Assembly Standing Committee on Commerce has also supported the proposal on import of cotton from all countries including India where it is cheap, adding that import of expensive cotton will have trickledown effect on value chains. The committee was of the view that farmers should be given incentives so that they grow cotton to meet domestic demand.
Copyright Business Recorder, 2021
Comments
Comments are closed.