Trade Development Authority of Pakistan (TDAP) has not so far established any setup to register the export of cotton yarn and cotton with it in line with the government's recent directions amid acute shortage of these two raw items on the local market.
According to sources on Tuesday the authority was immediately expected to set up a dedicated cell to register the export of cotton yarn and cotton to assess the impact of their increasing shortage in the local market on the textile garments output. After hue and cry and demands from textile value-added manufacturers and exporters the government however, did not impose a regulatory duty on yarn and cotton export instead asked TDAP to monitor the export of two major textile raw items.
According to sources, the authority is undergoing a reorganising phase which could be one along with other reasons that has held it back so far from doing so. "It may be the long-term plan therefore, TDAP is working on it very slowly. However, export of yarn and cotton is hurting the local textile garments sector badly," said a TDAP official on the basis of anonymity, when contacted.
The spinning millers who want higher volume of the raw items export for the consistent last three years of a lean period in terms of their export. Whereas the textile garments manufacturers and exporters find it difficult to arrange them for garments output to meet the export deadline for Christmas and New Year events in the western world.
The official said that there have been no such directions issued from the authority to its concerned departments to introduce mechanism for registering the exports of these raw materials.
A last meeting of the spinning millers, textile garments manufacturers-cum-exporters and the textile ministry in Islamabad remained inconclusive on the export of yarn and cotton. Textile minister shunned himself from deadlock between both spinner millers and textile garments exporters on the issue of yarn and cotton exports issue and clearly said that he has no control on the either party affair.
Later, on increasing pressure from the textile garments exporters, the government asked the TDAP to register export of yarn and cotton. Besides, a regularity duty, the textile garments exporters also demanded of the President Zardari to curb the export of yarn and cotton through an ordinance.
They want a complete restriction on the export of 32 count of yarn which is the primary raw items for the local textile garments sector, saying that a chaos from the shortage of raw item is likely to reduce the country's apparel exports. They also fear of the closures of industrial units in the country, which could result in a mass unemployment.
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