PHMA demands duty-free import of cotton yarn
KARACHI: Pakistan Hosiery Manufacturers & Exporters Association (PHMA) demands the Government to abolish custom duty and regulatory duty on import of cotton yarn and allow the import of cotton yarn from all over the world as Cotton Yarn is the major raw material of the value-added textile export industry.
Value-Added Garment & Home Textile Exporters are facing the severest ever a shortage of cotton yarn which is basic raw material. Where cotton yarn is available is of substandard quality.
Export orders of value-added textile are available, however, the exporters are reluctant to materialize the said export order in view of the ongoing crisis of cotton yarn.
In this scenario, such export orders meant for Pakistan shall be diverted to other regional countries stated by Shahzad Azam Khan, Central Chairman, Pakistan Hosiery Manufacturers & Exporters Association (PHMA).
During the time, value-added textile exports have been increased which indicates that the demand of cotton yarn by value-added textile exporters has also increased. While there is a huge demand of cotton yarn in the Pakistani Value Added Textile Export Industry, the yarn manufacturers/spinners are exporting cotton yarn to our competitors in the regional countries.
Meaning thereby, the yarn manufacturers, on one hand, are depriving the value-added textile sector with regards to the availability of cotton yarn in Pakistan and on other hand are passing on the subsidy benefit being offered and given by the Government in the shape of supply of gas and power on concessional rates to the regional competitors beside exporting cotton yarn, articulated by Shahzad Azam Khan.
Shahzad Azam Khan demanded that the Value Added Textile Export Sector contributes to more than 55 percent in total national exports, earns the highest foreign exchange, and provides huge employment, therefore, Cotton Yarn being the major raw material of the value-added textile export must be allowed duty-free import of cotton yarn from all over the world by abolishing custom duty and regulatory duty.
Needless to mention here that the sea freights are gone very high and increased by approx. 700% and there is also an acute shortage of containers/ vessels which has multiplied the delivery time from 45 days to 90 days. Therefore, Government must explore the shortest possible land routes to import cotton yarn, whether it is India, in order to support the textile industry to enhance exports. It is pertinent to mention that Pakistan is also importing medicines from India.
Further, in view of the shortage of cotton yarn in the country, it is also imperative that Government should also impose a regulatory duty on the export of cotton yarn below 40 all counts, and the rate of regulatory duty should be equal to subsidy impact which is being offered and given by the Government to yarn manufacturers/spinners in the shape of supply of gas and power on concessional rates. TF Report