Taking full advantage of financial and political uncertainties in Pakistan, the EU extended trade concessions are only meant to its own benefits, which will further push the country into a deeper turmoil. Value-added Textile Forum Chairman Muhammad Mushtaq told Business Recorder on Tuesday that the Union's policies "are only aimed at exploiting Pakistan" amid rising crisis, and the trade concessions were "eyewash".
He said that the Union had completely disguised its plan under the so-called trade concessions on items whose exports to EU would create further raw material shortage in Pakistan. He said the utmost sufferer of the concessions would be the value-added textile sector, which would ultimately succumb to yarn shortage in days to come. He said the impression, which the EU had given, was totally unethical and immoral because the concessions were not primarily aimed helping the flood-stricken nation but to fulfil the demand from its newly joined Eastern European nations for a raw material import at zero-rate.
With the announcement of the EU concessions, the price of local yarns and fabrics had mounted by Rs 10 to 12 percent in the last four days, Rana Mushtaq said, adding the concessions had started hitting local value-added textile sector. He said that the prices of polyester cotton and polyester viscose had also surged on the local market, and termed the move as illogical. He said the country should also adopt a restriction mechanism following Indian policy of supplying cotton only to its local industry for three months.
Expressing concern, he said that the concessions would badly disturb the demand and supply gap of yarn on the local markets, adding it would be much better for the country not to have such concessions.
According to him, the EU has offered concessions on products including 28 percent women and 37 percent of knit, in terms of value, while fabric and yarn exports will enjoy 61 percent duty relaxation into the Union's market. The statistics clearly depict that the EU is interested in running its member states' weaving and processing industry, he added. He said major textile products of the country had been missing in the EU trade concessions list.
Mushtaq said if concessions were given to the apparel sector it would generate more and efficient employment, which the country had badly needed to underpin its falling economy. He slammed the government for ignoring the value-added textile sector during negotiations with EU for trade concessions in Brussels. Showing pessimism, he said, the concessions would be hardly measurable and rather would trigger panic and uncertainties in local yarn and clothing markets and could result in a drastic price surge. He appealed to the EU to exempt Pakistan's apparel sector from duties for at least three years.