LAHORE: The Spot Rate Committee of the Karachi Cotton Association on Thursday decreased the spot rate by Rs 500 per maund and closed it at Rs 16000 per maund. The local cotton market remained bearish and the trading volume remained low.
Cotton Analyst Naseem Usman told Business Recorder that traders are facing transport problems due to the Eid-ul- Azha. He also told that there is a forecast of rains in the cotton producing areas of Punjab.
The rate of cotton in Sindh is in between Rs 15,800 to Rs 16,400 per maund. The rate of cotton in Punjab is in between Rs 16700 to Rs 16800 per maund. The rate of Phutti in Sindh is between Rs 6200 to Rs 6800 per 40 Kg. The rate of Phutti in Punjab is in between Rs 6800 to Rs 7200 per 40 Kg. The rate of Phutti in Balochistan is in between Rs 6800 to Rs 7200 per 40 Kg.
1200 bales of Tando Adam, 1200 bales of Shahdad Pur, 1000 bales of Sanghar, 800 bales of Hyderabad were sold in between Rs 15400 to Rs 15800 per maund, 400 bales of Burewala were sold at Rs 16000 per maund, 600 bales of Haroonabad were sold at Rs 16500 per maund and 400 bales of Chichawatni were sold in between Rs 16500 to Rs 16600 per maund.
Prime Minister Shehbaz Sharif on Monday directed the relevant ministers to immediately have a detailed meeting with the representatives of textile industry and come up with a solution till Wednesday (tomorrow) regarding finalisation of a competitive gas and electricity tariff for the export sector and restoration of gas to the captive power-run industry.
The PM also directed the authorities concerned to review the loadshedding policy of gas supply for the factories solely dependent on the commodity for their functioning.
Chairing a review meeting for the promotion of investment-related industries and the export sector, PM Sharif said country’s economic stability was linked to addressing the problems faced by the industrial sector.
The premier said that by extending every possible facilitation to industries, the country would be better able to present its products in the international market.
He directed the authorities to review the gas loadshedding schedule and policy for the factories that entirely relied on gas for their functioning. He also asked the ministers to hold meetings with the businessmen’s delegation to resolve their issues.
During the meeting, All Pakistan Textile Mills Association (Aptma) representatives briefed the PM about continued growth in textile exports and problems that are hampering the sector’s further growth.
The Aptma delegation informed the PM that textile exports climbed to the so-far highest figure of $19.35 billion during FY22, which is 43 per cent, 26pc and 90pc higher than the FYs 2018, 2021, and 2010, respectively.
In June alone, the country recorded $1.7bn in textile exports. PM Sharif was briefed that the zero-rated export industries, including textiles, used to have a competitive gas and electricity tariff ($6.5 per mmBtu of gas and 9 cents per kW of electricity) annually under a policy that ended on June 30. Due to this, the delegation said the industry is in the dark about the next policy of the government on tariffs.
The Aptma delegation also requested the premier to go for a straight five-year textile policy regarding a subsidised and regionally competitive gas and electricity tariff for the export sector.
Chairman All Pakistan Textile Mills Association (APTMA) Abdul Rahim Nasir has urged the Federal government to restore gas supply to textile industry on an urgent basis, stressing that a loss of almost $1 billion in exports has already taken place due to non availability of gas and closure of more than 300 textile mills.
Addressing a press conference on Wednesday at APTMA House, Lahore along with Chairman APTMA North Hamid Zaman, Senior Vice Chairman Kamran Arshad and Secretary General Raza Baqir, Rahim Nasir said that 26 percent upsurge in export of textiles during fiscal year 2021-22 was made possible only due to supply of energy at regionally competitive tariff. He added that textile industry showed exemplary performance of uplifting textile exports from $12.5 billion in 2020 to almost $20 billion in 2022 registering 60 percent hike in exports.
Rahim said exponential growth in textile sector has promoted investment of over $5 billion and establishment of 100 new textile units which when become operational would result in fetching additional export of more than $500 million per month or $6 billion per annum.
He pointed out that gas supply to industry has been suspended since June 30 2022, which has almost halted production in the whole value added textile industry causing colossal loss to the economy. He said large scale closure of mills has resulted in massive layoffs and unemployment spreading economic chaos.
Scores of value-added textile associations Wednesday termed the 10 percent supertax “harsh and destructive” for the export-oriented sector, demanding of the federal government to withdraw it immediately.
The associations said that the supertax is an addition to all multiple taxations levied on the export sector, calling it “highly disastrous” for the sector, which has performed actively in the economic turmoil in the country’s history.
In a joint statement, they demanded of the government to withdraw the super-tax at once in the “interest” of national economy, worrying that the imposition will have a “destructive” impact on the very export sector.
The Imposition will push the exports to doldrums, they warned, saying that it will waste the “hard” efforts of the exporters and “sabotage” value-added textile export.
“Otherwise, the sitting government shall be completely responsible for the expected destructive impact on the export sector, which may lead to complete closures and lay-offs heading towards massive unemployment and law and order situation,” they said.
The value-added textile sector have outperformed others and achieved a milestone with a historic export growth and foreign exchange earnings last fiscal year, they said.
The textile sector has performed beyond “excellence” with $19.4 billion of exports up by 26 percent, or $4 billion, standing out with its contributing to the total national exports of approximately $31.76 billion.
The Spot Rate Committee of the Karachi Cotton Association on Thursday decreased the spot rate by Rs 500 per maund and closed it at Rs 16000 per maund. The Polyester Fiber was available at Rs 325 per kg.
Copyright Business Recorder, 2022