LAHORE: The Spot Rate remained unchanged. The local cotton market on Wednesday remained steady and the trading volume remained low.
Cotton analyst Naseem Usman while talking to Business Recorder said that according to the fortnightly report issued by Pakistan Cotton Ginners Association on Monday 7.35 million bales arrived as compared to the last years production of 5.37 million bales during this period.
He also told that cotton will not be available in the Month of January. New crop of cotton will arrive in June. He also said that prices of cotton and cotton related products like yarn and Banola increased by 60 percent during 2021.
He also told that that price of Punjab’s Phutti attracted per 40 kilograms prices from Rs 6000 to Rs 8000.
Cotton of Sindh was traded from Rs 15000 to Rs 19000 per maund, Punjab’s cotton was traded from Rs 16000 to Rs 18500 per maund. He told that 1200 bales of Pano Aqil was sold at Rs 18500 per maund, 600 bales of Mehrab Pur were sold at Rs 17011 per maund, 800 bales of Rahim Yar Khan were sold at Rs 18500 per maund and 1000 bales of Multan were sold at Rs 18300 per maund.
Textile makers-cum-exporters on Tuesday feared the government’s move to “withdraw” the Textile Policy 2020-25 will “destroy” the textile industry, terming the decision “the deadliest u-turn” in the country’s history.
“The government’s decision to withdraw the ECC-approved textile policy 2020-25 and discontinuing the relevant policy measures to uplift textile exports shall prove as the deadliest u-turn in the history of Pakistan which will not only sabotage all the hard efforts of value-added textile exporters but will also destroy the textile industry of Pakistan,” a joint statement of several textile associations said.
The joint statement gave a strong reaction with serious concerns to a print media report, suggesting that “the Commerce Ministry has been compelled to withdraw the textile policy in the wake of harsh measures and steps taken by the Finance Ministry”. It called the Finance Ministry’s measures “unwise” and “reckless” amid taking off textile export industry. It also rejected the Federal Finance and Energy Ministries’ “dictation” to the Federal Commerce Ministry, leaving it with no practical role in the economic affairs. It dubbed the retracting of Textile Policy an “earthquake” for the entire industry. Referring to the media report, it said that the government’s decision is seen as “the final nail in the coffin of severely injured and ailing textile export industry”.
The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has lambasted the commerce ministry to withdraw Textile and Apparel Policy 2020-25 despite the fact the ECC and Cabinet has approved and ratified it after a long delay, calling for the reversal of the decision and its speedy implementation, as it is vital for new investment and marketing plan in the major export-oriented sector.
PRGMEA north zone chairman Sheikh Luqman Amin, in a letter written to ministry of commerce, observed that withdrawal of this policy will affect the value-added garment sector seriously, as it is against the slogan of the Prime Minister’s vision of promoting exports. We are already far behind the regional countries with regard to exports due to poor policies, as we set the target of achieving Bangladesh’s export level but adopt the policies of Ethiopia, he lamented.
He said that the Economic Coordination Committee of the cabinet last month had finally approved the Textile and Apparel Policy 2020-25, with the directives to relevant stakeholders to take the Federal Board of Revenue and power division’s input, but now the Policy is being withdrawn on the interference of Finance Ministry, leading to further delay in implementation of this vital policy. He said the textile policy has been pending since 2019 and several drafts were submitted to the ECC for approval and now the ministry is going to withdraw it to incorporate inputs of the FBR and the finance division while finalizing this Policy of 2020-25, which will further delay its implementation. He warned the government of removing incentives from the new textile and apparel policy, especially the DLTL, saying the move will damage the exports, amidst growing trade deficit in the country.
Sheikh Luqman Amin added that a clear and long-term policy will provide investors a clear vision that the government of Pakistan is ready to support the apparel sector of Pakistan on long-term basis. He said that the garment industry has been affected seriously due to long delay in the final announcement of the new textile policy by Economic Coordination Committee of the cabinet in the past, as the PM had given approval in this regard long ago.
The Spot Rate remained unchanged at Rs 18300 per maund. The Polyester Fiber was available at Rs 252 per kg.
Copyright Business Recorder, 2021