KARACHI: An increase of nearly 36 percent in cotton yarn export in February 2021 triggered panic among the apparel makers, who seek a complete ban on the commodity’s export.

Cotton yarn export grew by 35.86 percent in terms of volume during February 2021, Pakistan Apparel Forum chairman Muhammad Jawed Bilwani said on Wednesday.

He said that the rising volume of export of cotton yarn had deteriorated apparel sector’s growth as the country continued to face energy shortage.

“The value added products of knitwear, bedwear, towel and readymade garments have witnessed a decline of 26.14, 7.35, 11.36 and 0.42 percent respectively in February 2021 compared to January 2021,” Bilwani said.

Instead of exporting the essential raw material, it could be converted into high value-added products like garments to help the country earn foreign exchange and generate more employment, he said.

In the wake of the “severest” shortage of cotton yarn, the government should immediately place a ban on export of cotton yarn, he said.

He said that the government should also abolish the existing five percent customs duty on import of cotton yarn below 40 single count.

Cotton yarn prices surged 40 percent, but even at that exorbitant rate it was unavailable on the local market, he said.

“The situation has also compelled the exporters not to take new orders and for that reason such export orders meant for Pakistan shall be diverted to other regional countries,” Bilwani said.

In addition, he said, the dollar had depreciated against the rupee by seven percent, which was also a matter of concern for the exporters as the situation might lead to a liquidity crunch.

Copyright Business Recorder, 2021