KARACHI: The value-added sector warns that the crisis is yet not over as duty-free cotton yarn imports will not ensure smooth supply of key raw material on a sustainable basis.

The government recently waived customs duty on cotton yarn but refused to allow imports from India. This facility is available till June 2021.

“The government should know the situation of shipping lines. Any import or export of consignments takes two to three months as most of the ports are facing severe congestions,” said Pakistan Apparel Forum (PAF) Chairman Javed Bilwani.

Aamir Aziz, another exporter, confirmed to Dawn that the shipping lines have also increased their freight charges by five to six times and even then take too much time to ship the goods.

“If June is the deadline, it means we could not import cotton yarn under the situation as shipping lines are overloaded,” Mr Bilwani said.

Answering a query they said the recent data showing export growth is the result of at least two months before production and shipment and the impact of shortage of cotton yarn will be felt in the next few months.

Published in Dawn, April 18th, 2021


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