Delay in import of over 0.5 million bales via Wagha border hitting industry

The Ministry of Commerce has delayed permission to import over 0.5 million cotton bales from India via land route at the Wagha border, a situation hitting the textile industry's viability hard. The textile industry sources said a large quantity of cotton imported from India has stuck up with the border terminal at the Wagha, as the Commerce Minister Khurram Dastgir has not yet decided the fate of repeated requests for enhancing the quantity of cotton imported through land route at the Wagha border.
The industry sources further said the government has restricted import of cotton to 500,000 bales through land route while there is no such limit on the import of cotton through air and sea. "The storage charges are piling up fast, having already touched to Rs 5 million and the ministry is not ready to pay heed to repeated requests," said one textile miller.
An official at the Wagha border terminal, requesting anonymity, has also confirmed stocking of large quantity of bales at the terminal, causing heavy demurrages to the textile millers. "Many importers have submitted written applications to waive off the demurrage but we are unable to do so until the ministry allows us," said one official at the Wagha terminal.
The federal government has allowed import of cotton bales through Wagha border to the extent of 0.5 million bales under the Trade Policy 2012-15. There was no hue and cry on the policy until an unprecedented cotton crop failure this year, putting spinning industry into a troublesome situation which started looking for availing all sources of cotton including India through Wagha Customs Port. The limitation of 0.5 million bales through Wagha border has exhausted and the import activity has come to a halt.
The All Pakistan Textile Mills Association has also requested the ministry to intervene and avoid any untoward situation. It has asked for necessary amendment in the trade policy and increase the quantity to one million bales to let the textile industry meet its requirement without delay. It is learnt that the ministry has expressed its inability to enhance the limit until the policy is approved by the Economic Co-ordination Committee. However, the Commerce minister has assured of exercising his special discretion of allowing to enhance the limit to 0.2 million bales on one-time basis. The textile millers have urged the Commerce minister to remove the restriction on import of cotton bales through land route at the Wagha border.