KARACHI: The local cotton market remained stable on Saturday. Market sources told that trading volume was satisfactory. Cotton Analyst Naseem Usman told that the rate of cotton reached at ten years high of Rs 11000 per maund. Bullish trend was witnessed in the international cotton market.
Naseem also told that Economic Coordination Committee (ECC) of the Cabinet postponed the approval the new Textile and Apparel Policy (2020-25) till the next meeting.
The government is set to unveil an ambitious Textile and Apparel Policy 2020-25 laden with cash subsidies and lower rates on utilities worth Rs960 billion to boost production and exports of value-added textile products.
The proposed policy, which will be the third such policy, estimates three scenarios that the measures will lift the textile and clothing exports to a minimum of $15.7bn and a maximum of $20.8bn by end of the year 2025.
Well-placed sources told that the Federal Board of Revenue (FBR) has sought one week's time to analyse the revenue implications of the proposed measures under the policy. One of the major recommendations of the textile division is the restoration of the zero-rated regime for the five export-oriented sectors. The facility was withdrawn in the year 2019.
The FBR will take up the issue of a zero-rated regime revival with the International Monetary Fund," the sources said, adding the stakeholders also want its revival to cope with the impact of Covid-19.
Meanwhile, The Pakistan Readymade Garments Manufacturers and Exporters Association has endorsed the demand of PM Advisor on Commerce Abdul Razak Dawood to seek zero-rating regime for the whole textile chain in the Textile and Apparel Policy 2020-25, stating the apparel sector is eagerly waiting for the approval of it from the ECC to make future marketing plan in the light of new policy.
PRGMEA Central chairman Sohail A. Sheikh and chief coordinator Ijaz Khokhar, in a joint statement, issued observed that restoration of the zero-rating status of the textile sector is vital to maintain the momentum of present enhanced exports, as currently, the sector is working at full capacity to meet the high demand of export orders.
Naseem also told that a Parliamentary Committee on China-Pakistan Economic Corridor (CPEC) was held at National Agriculture Research Centre, Islamabad under the Chairmanship of Sher Ali Arbab, MNA.
The Committee was briefed by Secretary, Ministry of National Food Security & Research and Chairman, Pakistan Agricultural Research Council regarding Pakistan Agricultural Research Council and other projects related to the agriculture sector.
The Chairman, Pakistan Agricultural Research Council (PARC), while sharing 10 years development targets under CPEC, briefed the Committee that PARC's aim is to change Pakistan from a cotton import country to a cotton export country and save foreign exchange of US $1.5 billion.
Besides renovation of existing orchards, the introduction of new varieties, reducing post-harvest losses, improving value chain and development of rural industries are major proposed interventions.
Naseem Usman told that 400 bales of Dherki were sold at Rs 10,700 per maund, 400 bales of Saleh Pat were sold at Rs 10,700 (Condition), 1000 bales of Khan Pur were sold at Rs 11,000, 800 bales of Shujabad were sold at Rs 10,600, 1200 bales of Haroonabad, 1000 bales of Faqeer Wali, 1000 bales of Fort Abbas, 2400 bales of Bahwalpur were sold at Rs 10,500, 1400 bales of Yazman Mandi were sold at Rs 10,200 to Rs 10,500, 400 bales of Ahmed Pur East were sold at Rs 10,200 and 400 bales of Layyah were sold at Rs 9600 to Rs 9700.
Naseem also told that rate of cotton in Sindh was in between Rs 9700 to Rs 10,400 per maund. The rate of cotton in Punjab is in between Rs 9800 to Rs 10,500 per maund. He also told that Phutti of Sindh was sold in between Rs 3800 to Rs 4700 per 40 kg. The rate of Phutti in Punjab is in between Rs 4000 to Rs 5500 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1600 to Rs 2000 while the price of Banola in Punjab was in between Rs 1750 to Rs 2200. The rate of cotton in Balochistan is Rs 10,000 per maund. The Spot Rate remained unchanged at Rs 10,500 per maund. The Polyester Fiber was available at Rs 183 per Kg.
Copyright Business Recorder, 2021