KARACHI, May 4: Commerce Minister Abdul Razak Dawood hinted on Friday that the government would allow import of high count yarn at lower duty rates to facilitate value-added textile industry to produce high quality products.

Speaking at a dinner hosted by the Pakistan Hosiery Manufacturers Association, at PHMA House, the minister said import of good quality and high count yarn will help the garment and other ancillary industry to produce fancy and special made-ups.

He hoped that after this the local spinners may come up and initiate to produce quality and higher count yarn needed to produce quality textile made-ups which fetch better price in the world market.

Dawood lauded the achievements made by the PHMA on the export front and said, “truly it has become a $1 billion export association,” a target achieved after entirely meeting the need of the domestic market.

As a result of this achievement, he said, the association has developed a considerable force in the textile sector and the government would do its best in assisting and resolving the issues confronting the value-added textile sector.

The minister said that he would like all other value-added textile sectors to achieve export growth as has been made by the bedlinen exporters.

He said presently Pakistan is well-known in the world market for its good quality bedlinen.

He categorically said that the days are gone when APTMA used to dominate the textile sector but now it has a ‘diminishing’ role because the industry has to move forward to value-addition.

“I would say that now the era is for garments, hosiery and other made-ups and I feel happy to claim that we are moving at right direction,” the minister maintained.

In the past raw cotton exports went upto $500 million but this year it has declined below $50 million which is a positive development.

Under the ‘Textile Vision’, the minister said the textile sector is moving towards right direction.

Despite being the fourth largest cotton producing country, he said we are placed at 8th in export of textiles and as such we have to move at 5th in coming years.

Similarly, he said there is good progress towards production of clean cotton and added in 1999-2000 the rate of contamination was 25 grams per bale but this has come down to 8 grams.However, this has to be further reduced to 2.5 grams per bale the target set by ‘Textile Vision.’

However, he was highly critical about the ginning and said presently it is the weakest link in our entire textile sector and there is urgent need to upgrade its technique and needs a lot of government attention for improving its working.

Referring to a point raised by Muhammad Kamran Chandna, vice-chairman PHMA, with regard to show-cause notices issued to the members of the association by the Collectorate of Sales Tax, Karachi, the minister said that he will look into the matter and justice will be done.

Agreeing with the demand to allow duty-free second hand boilers and some other machinery, Dawood said that this matter will be taken care in the new trading policy being announced soon.

Demand for having “one window system” for resolving problems confronting exporters with Ministry of Finance, CBR, provincial governments etc., the minister said he will be taking up the matter with finance ministry.