Pakistan: Call to restrict yarn export

KARACHI: Pakistan Readymade Garments Manufacturers and Exporters Association former chairman Bilal Mulla has asked the Cabinet Committee on Textile and Textile Industry Minister Rana Mohammad Farooq Saeed Khan to restrict export of yarn in order to make it available in the local market for the value added textile industry.

Monthly export of yarn prior to June 2009 was 48 million kg but it jumped to 55 million kg in July 2009, 63 million kg in August, 56 million kg in September, 74 million kg in October, 60 million kg in November and 62 million kg in December.

"Thirty per cent excess quantity has been shipped from July to December 2009 compared to 36 months prior to July 09," Mulla said in a statement.

He said the National Assembly Standing Committee on Textile was leaning towards recommending a ban on export of yarn and the Standing Committee on Commerce was also recommending a ban on export. However, he said, the Senate Standing Committee on Textile recommended quantitative restriction of 25 per cent of total production.

Pakistan's share was 32 per cent in global yarn exports. "Pakistan is the only country which is exporting its raw material to its competitor countries," he said. China, he added, was converting its raw cotton into fine cotton yarn above 32 single count and was buying required course yarn below 32 single count from Pakistan.

Yarn export was registered with the TDAP at $1.92 per kg but when that 1kg yarn was converted into a value added product it earned $14 per kg, he said.