Bilal Mulla, a former chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), has urged the government to impose 30 percent regulatory duty (RD) on export of yarn for six months, till the next crop comes into the market.
Commenting on the decision of the cabinet committee on textile he said that imposition of 15 percent RD is a first step in the right direction but is not enough to ensure availability of yarn to local industry. "The government should have taken the decision in December 2009 but the spinning sector managed to gain time and the country lost a lot by exporting yarn in the last 9 months," he said.
Talking to Business Recorder, he said that every country has full right to retain its raw material in order to convert the same into value-added products. Recently, India banned export of cotton, while Bangladesh also slapped a bar on export of raw jute. Presently, valued-added textile exporters, such as garments, knitwear, home textiles and towels, are on the verge of collapse due to nonavailability of yarn locally and are looking towards the government to take concrete steps in national interest.
Value-added sector is in a position to provide employment to 18 million unskilled/semi-skilled and skilled workers and earning substantial foreign exchange for the country and no other sector has the potential to provide such huge employment. "The government is losing only $2 per kg by restricting yarn export while value-added sector can provide $12 per kg by converting the same quantity of yarn into garments besides providing employment," he added.
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