KARACHI, Nov 8: The textile associations representing value-added sector have demanded an export tax of at least 10 per cent on yarn and total abolition of refinance facility on its export and sought effective steps to stop yarn export.

They also want the government to withdraw minimum export tax and that spinning sector should pay full income tax like other companies.

If the demands are not met, leaders of the value added textile sectors have warned the government to prepare itself for “massive unemployment” in the coming days.

Deeply hurt on being ignored in a meeting last Thursday (Nov 6) of all the textile stakeholders called by the Commerce Minister Humayun Akhtar in Islamabad the Chairman of Pakistan Hosiery Manufacturers Association (PHMA) Dr Khurram Tariq complained that the representatives of value-added textile sector were given hardly 15 minutes to speak on their problems. Growers and spinners consumed more than two hours in ventilating their views.

He said the prices of yarn were increasing with every passing day making the production cost unbearable for the buyers. Walmart, one of the main buyers of Pakistan’s textile made ups is reported to have refused to accept price increase in textile products.

Two zonal leaders of PHMA Amjad Khawaja and Imran Ali Sabir questioned the government’s policy of free market and even playing field for all players when Pakistan’s competitors enjoy cheap export refinance and generous rebates.

Dr Shazad Arshad of Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association urged the spinner to hold a weekly review meeting to decide on fixing a ceiling price of cotton and should ensure that this price is adhered to. The association has also asked for a number of steps that should ensure cotton import from India and other countries.