Minister invites value-added sector to discuss problems-Texglobe

LAHORE (May 21 2010): Federal Textile Minister Rana Farooq Saeed has invited the value-added sector leadership to discuss the controversy prevailing in the textile sector with the imposition of 15 percent regulatory duty on exports of yarn. Talking to Business Recorder, Federal Textile Minister said the APTMA delegation called on him a day earlier and presented its viewpoint.

He said he has listened to the concerns of the spinning industry and he would hold a meeting with value-added sector representatives. He further said he was contacted by neither the President nor the Prime Minister on the issue of 15 percent regulatory duty on exports of yarn.

It may be noted that the spinning industry had held two-day strike against imposition of 15 percent regulatory duty on exports of yarn on Tuesday and Wednesday. The spinning mills owners and their workforce had organised protests across the country while chanting anti-ministry slogans and burning tyres on roads. The APTMA leadership had also vowed to go on indefinite strike in case the government failed to listen to it.

Accordingly, a meeting between the two sides held on Wednesday, followed by further developments on negotiation front. Meanwhile, the spinning industry circles have told Business Recorder that they have started receiving email messages from their buyers, showing concerns over the imposition of 15 percent regulatory duty on exports of yarn. According to them, their buyers have started brining it to the notice of their respective governments to take up the issue with Pakistan government, as why it was negating the Free Trade Agreements (FTAs).

They further said that massive quantity of yarn was stuck up at the Karachi port with the imposition of 15 percent regulatory duty on exports of yarn. These circles have also feared that the heavy retrenchment is likely to take place in spinning industry in case no immediate resolution of the issue is ensured by the government.

Rana Mushtaq, central chairman of Pakistan Hosiery Manufacturers & Exporters Association said the spinning industry was crying against the end of its 60 years old monopoly. He further added that the gas consumption load of spinning industry was remained intact despite its media hype over strike against imposition of regulatory duty on yarn exports.