KARACHI, Feb 26: The government is likely to impose duty on export of cotton yarn. The step is being taken to improve its supply in the local market and ensure its availability for the value-added textile sector.
In order to examine the possibility of imposing export duty on yarn, the Export Promotion Bureau has convened a meeting of stakeholders on Saturday, which will be chaired by the director general (Textile EPB).
The textile ancillary industry has been demanding of the government to impost duty on export of cotton yarn as it is crippling their exports. The industry has been arguing that on the one hand their competitors are getting cheap raw material (cotton yarn) from Pakistan, but on the other the domestic industry is being deprived of this much-needed raw material.
The Pakistan Hosiery Manufacturers Association (PHMA) has specifically put this case before the EPB, suggesting to restrict exports of cotton yarn by imposing export duty.
The association pointed out that there was an urgent need to improve domestic supply of cotton yarn for value-added sectors like knitwear, hosiery, towels and apparels.
The textile ancillary industry says that unbridled export of cotton yarn is badly affecting domestic supplies. The industry argues that due to low supply position cotton yarn prices have touch an unprecedented level, thereby affecting their export competitiveness in world market.
The value-added textile sector has been claiming that a check on yarn exports will also help attract foreign investment in the textile sector. Though the government for the last many years has been strictly following the free trade policy for cotton and yarn, the current season has seen raw cotton prices above Rs3,000 per maund.
EPB 'ignores' Aptma chief: All Pakistan Textile Mills Association (Aptma) chairman Waqar Mannoo has lodged his protest over the convening of a meeting by the EPB to discuss a proposal for restrictions on export of cotton yarn.
In a letter addressed to the EPB chairman Tariq Ikram, the Aptma chief pointed out that a matter of such fundamental importance was being taken up by the EPB without bringing it to the notice of the association.
He said the EPB had only invited some senior members of the association in their personal capacity but had yet to extend formal invitation to its chairman, which represented the largest segment of textile industry.
Mr Mannoo suggested that it would have been appropriate if proper representation of all sectors, including spinning, weaving and value-addition, had been sought in consultation with Aptma.