Value-added textile sector on Monday demanded of the government to impose complete ban or increase the rate of regulatory duty on export of yarn from 15 percent to 30 percent. However, Aptma, Textile Spinning sector and Karachi Cotton Association have demanded continuation of policy of free import and export of cotton and yarn.
National Assembly body on textile met in the parliament house with Haji Muhammad Akram Ansari in the chair. Textile sector represented by Sohail Pasha, Rafiq Habib Godil, Waqar Alam, Khurran Mukhtar, Rana Muhammad Mushtaq Khan, Muhammad Jawed Balwani proposed to the Committee to impose complete ban on the export of cotton and yarn or increase the rate of regulatory duty from 15 percent to 30 percent and duration of this duty should be at least one year instead of just 60 days.
Thy also proposed to the committee that yarn should be declared raw material, only yarn manufacturers should be allowed to export yarn and ban should be imposed on commercial exporters. They also demanded of the committee that law should be amended and it should be made mandatory for the spinners not to keep stock of cotton for more than three months period. Activities of the spinning sector should be monitored so that no one is able to hoard the excess cotton or yarn.
Members of the committee were of the view that why local yarn has been exported at a price of 50 US Cents and is being imported at a cost of 90 US Cents. They also demanded the government to impose ban or increase the rate of regulatory duty on export of yarn from 15 percent to 30 percent.
On the other hand All Pakistan Textile Mills Association (Aptma) representative Sheikh M Akbar and representative from textile spinning sector Anwar Ahmed Tata, and Karachi Cotton Association (KCA) strongly opposed the imposition of 15 percent regulatory duty on the export of yarn and demanded of the government to continue the policy of free import and export of cotton as well as cotton yarn to allow growers to get international price of their commodity.
Representative from the Aptma warned that if the current policy of free import and export of cotton and yarn is discontinued the textile industry would be forced to close down their units within next two months. He also informed the committee that there are many yarn manufacturing units in the country, which are producing special type of yarn that is not used in the country; the regulatory duty on all types of yarn would force these units to close their operations.
He also informed that country needs 15.5 million bales of cotton each year and current production is estimated at 12.7 million bales. Some 7000 bales of cotton have been exported and due to current shortfall the textile industry is facing shortage 3.5 million bales. Industry till date has imported around 2 million bales and remaining shortfall would also be met through import of cotton. Ban imposed by India on cotton export would also hurt the local industry, however, LCs opened before the imposition of ban by India would be honoured.
Representative from Karachi Cotton Association Sohail Nasim also demanded of the committee to recommend the government to continue the policy of free import and export of yarn and cotton.
The minister informed the committee that excess export of cotton yarn was due to the customs authorities and the ministry was well aware of the current crisis of yarn in the country, which is seriously hurting the value added sector.
He was also of the view that it is the textile sector, which has the capacity to bring out the country from current financial crisis by increasing its exports. He assured the textile sector that ministry would help each sector of textile to develop this key industry.
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