Source: Business Recorder

RECORDER REPORT

Apr 16, 2021
KARACHI: The value-added textile exporters Thursday thanked Prime Minister Imran Khan for allowing duty-free import of cotton yarn till June 30, 2021. They also appreciated Commerce Adviser Razak Dawood and the Cabinet for considering their demand, which they were raising since October 2020 due to the unavailability of cotton yarn in the local market.

This joint statement came up from various Value Added Textile Sector Associations, which are included: Jawed Bilwani, Chairman, Pakistan Apparel Forum, Waheed Khaliq Ramay of Power Looms Owners Association, Ijaz Khokhar, Chief Coordinator & Ex-Central Chairman, Pakistan Readymade Garment Manufacturers & Exporter Association, Riaz Ahmed, Central Chairman Mian Farrukh Iqbal, Senior Vice Chairman, Pakistan Hosiery Manufacturers & Exporters Association, Syed Aasim Shah, Former Chairman, All Pakistan Bedsheets & Upholstery Manufacturers Association, Rafiq Godial Chairman, Former Chairman, Pakistan Knitwear & Sweaters Exporters Association, Dr. Shahzad Arshad, Chairman, Pakistan Cotton Fashion Apparels Mfrs. & Exporters Association, Aamir Lari, Vice Chairman, Towel Manufacturers Association of Pakistan, Abdus Samad, Chairman, Pakistan Cloth Merchants’ Association.

“The belated decision, however, shall provide only partial relief in the wake of sea trade congestion as the shipments are taking more than two months time to reach Pakistani ports. Therefore, textile exporters are of the opinion and appeal the Government to allow duty free import of cotton yarn till time the government achieves its set cotton production target of 10.5 million bales,” they said.

To ease down the cotton yarn crisis, they said that it is also imperative that to also place a ban on export of cotton yarn from Pakistan or impose 10 percent duty on export of cotton yarn from Pakistan.

They said that there should be necessary steps and measures to import cotton yarn safely from Central Asian Republics through land route by activating all the transit trade agreements signed with regional countries. “The sea route is taking long duration due to shortage of containers and vessels,” they said.

The textile exporters requested to the Government to take cognizance over hoarding of cotton yarn and cartelization by concerned which are actionable as per law under the Price Control and Prevention of Profiteering & Hoarding Act 1977 and Competition Act of Pakistan 2010. According to the Act of 1977 cotton yarn is included in the schedule of essential commodities like sugar, wheat, edible oil, etc.

“Therefore, the Government must immediately take action as per the law against spinning mills and yarn traders involved in monopoly, abusive dominance for exorbitant pricing and hoarding and immediately conduct raids by arresting the culprits and seize the hoarded cotton yarn and also conduct Forensic Audit on the pattern of sugar crisis that will prove it many times bigger scam than the sugar scam as it is learned that approx. 2 million bales have been sold without sales tax and invoices in the local market,” the added. (Source: Business Recorder)