Associations of value added textile sector on Friday urged the government to immediately withdraw the five per cent duty on import of cotton yarn and save the country's 'largest' foreign exchange earning sector from being collapsed.
"It is really surprising that our business-friendly government is not providing any relief to the vital value added textile sector which is presently suffering huge losses, while it is protecting the already profit-making spinning sector," said a spokesman for value added textile associations, Muhammad Javed Bilwani, at a news conference held here on Friday at Pakistan Hosiery Manufactures and Exporters Association (PHMA) House.
Council of All Pakistan Textiles Association's Chairman Muhammad Zubair Motiwala, Pakistan Hosiery Manufactures and Exporters Association's Chairman Muhammad Babar Khan, Pakistan Cotton Fashion Apparels Manufactures and Exporters Association's Chairman Dr Shahzad Arshad and heads of other associations were also present on this occasion.
They urged the government to immediately withdraw 5pc duty on import of cotton yarn, or else they will hold country-wide protests. He said that as per vide SRO 15(1) 2010, 5pc duty on import of cotton yarn was exempted on the recommendation of the Ministry of Textile Industry while this exemption was withdrawn by the Economic Co-ordination Committee on April, 2014.
He said that all over the world export of raw material is greatly discouraged and restricted while import of raw of material is always allowed just because of value addition and earning of more foreign exchange. In comparison to this, in our country most unfortunately it is the opposite and essential raw material for value additions is allowed to be exported.
Accusing the government of imposing 5pc duty on the import of cotton yarn on the pressure of spinning companies, he regretted that government while taking such a step did not bother to take the stakeholders of value added textile sector on board. He asserted that the spinning companies were making profits and there is no report of any closures, while the value added textile industries have been suffering huge losses and some 300 units have been compelled to close down just because of high costs of doing business.
Our value added textile exporters who participated in Heimtextile bagged considerable orders but it is evident that their costs which they calculated will be greatly affected when the yarn in the local market will be expensive. Similarly, several sportswear manufacturers and exporters from Sialkot who participated in the prestigious sportswear exhibition Texworld Turkey, and got orders, will also suffer.
He said that in case the government wanted to continue the import duty on import of cotton yarn then it should also impose duty on export of cotton yarn or there should be no duty either on import of cotton yarn as well as on its exports because under the prevailing circumstances, value added sector which earns largest amount of foreign exchange for the nation and generates the huge employment, might be ruined.