PHMA opposes levy of duty on yarn import

Central Chairman, Pakistan Hosiery Manufacturers & Exporters Association, (PHMA), Shahzad Azam Khan, has expressed concerns over the government's expected move to impose duty on import of yarn. In a letter to Federal Textile Minister, he said the imposition of import duty on yarn is seen a conspiracy against the country's economy, adding that "if the government imposes duty on the import of yarn, it would amount to a conspiracy against the nation's economy".
He said the value-added apparel textile sector is disturbed as the government is consulting with spinning sector while there are a number of different textile associations which have a big export share. "The economic managers of the country and other government organisations are led to believe that APTMA alone is the representative body of the entire textile industry but this is not true at all." he said.
Value added apparel textile sector, which contributes the largest amount of foreign exchange and generates largest employment, does value addition of 73 percent against 59 percent of value addition by the yarn manufacturers," he said in the letter. He enumerating the problems of the value added apparel textile sector pointed out the gravity of the situation that causes closure of a large number of factories. He said the government has to take immediate 'positive' steps to salvage the ailing textile sector from a complete closure.
He said if the government did not step up now then the value-added textile sector is unlikely to revive. He urged the government to end its policy of refund, suggesting 'no payment no refund' system should be adopted for exporters to save their finances and precious time. Shahzad Azam Khan said that "all refunds be reimbursed to the exporters at the time of export proceeds realisation to save both FBR and exporters from botherations. He urged for Proper Implementation and Continuation of the Textile Policy in letter and spirit.
He sought the top priority of the government, for export- oriented textile sector, to provide power and gas supplies uninterrupted. "We should be placed at No 1 in the priority list of Ogra and Nepra," he said. He said the government should ensure release of all pending DLTL claims, besides regular supply of basic raw material including cotton yarn. "There should be no duty on the import of cotton yarn and it is proposed that only fine count be allowed to be exported," he maintained.