RD on export of yarn: Aptma, value added textile sector start talks-Texglobe

LAHORE (May 31 2010): Joint committee of All Pakistan Textile Mills Association (Aptma) and value added textile sector has started negotiations in Karachi to resolve the issue of imposition of 15 percent regulatory duty on the export of yarn. For this purpose Bashir Ali is representing Aptma and Zubair Motiwala, textile advisor to Chief Minister Sindh is representing the valued added textile sector.

Faraz Alam, Chairman FCCI standing committee on textile told Business Recorder on Sunday that a positive result is likely to come out of these negotiations on Monday (today).

It may be added that government had asked Aptma and value added textile sector, of their viable suggestions regarding the issue of yarn export. It may be recalled that the value added textile sector had been demanding of the government to ban yarn export to avoid - closures of 45,000 export oriented units, losing out on billions of dollars in foreign exchange and unemployment of 1,81,00,000 labourers.

Citing examples of neighbouring countries, the sector said that neighbours have put a ban on export of raw materials to save their local industries. Sharing their viewpoint, Aptma has called upon the government to continue its free trade policies. It claimed that they (Aptma) is compelled to import raw cotton at international prices between US $90/lbs - US $100/lbs, therefore until it was assured of no further unjustified restrictions, it will be unable to keep this industry running.

Faraz Alam said that after imposition of 15 percent regulatory duty on yarn export, international buyers have threatened to take a legal action against Pakistani exporters as after the opening of Letter of Credits, there can be no change in quoted and accepted price.

He claimed that credibility of Pakistani yarn exporters has been dented seriously, and in future, importers of Pakistani yarn will always have a second thought before placing an import order due to frequent changes in policies. He further added that spinning mills are facing power outages of four hours daily, one day complete stoppage in gas supply weekly and to add insult to injury, a low gas pressure during other six days of the week has alarmingly hampered the output of textile spinning mills.