Chairman All Pakistan Textile Mills Association (Aptma) Gohar Ejaz has urged President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani to seek exemption from safeguard duty on Pakistan cotton fabrics under the safeguard measures adopted by the Turkish government.
Turkey has imposed safeguard duty on import of cotton fabric, including denim, grey and processed fabric, from Pakistan, a measure likely to hit adversely $240 million exports from Pakistan. According to him, Pakistan's overall textile export to Turkey is around $350 million with major chunk of cotton fabric, ie 70% of total exports, and the proposed 30 percent safeguard duty would continue for next three years once it is levied by the Turkish government after safeguard investigations.
Ejaz said any such restriction on Pakistan exports to Turkey is a negation to the vision presented by the Turkey and Pakistan leadership during the visit of Turkish President Abdullah Gul, vowing to elevate bilateral trade to the tune of $5 billion by 2015.
The chairman Aptma pointed out that Pakistan is already passing through a crisis like situation due to devastating floods in the country and the terrorism related cost resulting in a stagnation of exports as against the potential of the textile industry.
He feared that imposition of safeguard duty on Pakistan cotton fabric by Turkey would add to troubles of Pakistan textile industry. It may be added that the fabrics produced by Pakistan and exported to Turkey for use in garments exported to Europe is hardly manufactured locally by the Turkish weaving industry. Therefore, he stressed that export of Pakistan cotton fabric is not likely to cause any injury to the Turkish domestic industry.