KARACHI: The value-added textile sector on Friday criticised the government decision to withdraw five per cent duty exemption on import of cotton yarn and feared that it may push yarn prices higher in the local market.

Leaders of different representative bodies of textile ancillary sectors urged the government to review the decision because it will adversely affect exports by the value-added textile sector which contributes up to 80 per cent to total textile exports.

Pakistan Apparel Forum’s Jawed Bilwani said that the government had taken the decision under influence of spinning sector which contributes only up to 20pc to country’s textile exports.

He said that when there was duty on import of cotton yarn, the value-added textile sector faced great shortage of cotton yarn. However, he said at that time spinners demanded end of duty and a free trade in cotton yarn.

But now the government has withdrawn five per cent duty exemption on import of cotton yarn and which would favour spinners and it would be against the interests of value added textile sector.

Shabir Ahmed, patron-in-chief of Pakistan Bedwear Exporters Association (PBEA), said that the withdrawal of duty exemption came at a time when exports were already under pressure due to rapid revaluation of the rupee.