The All Pakistan Textile Mills Association (Aptma) has regretted that the National Commodity Exchange Limited (NCEL) is being allowed to initiate trading in cotton yarn along with gold.
Aptma Chairman Waqar Monnoo, in a letter to the Chairman, Securities Commission of Pakistan (SECP), Dr Tariq Hasan, referred to his statement, arguing that the inclusion of cotton yarn futures had been made in response to the demands from the stakeholders.
Monnoo said: "This is all the more surprising because the Aptma is the only body representing the spinning mills in the country and our views have certainly not been sought in this regard.
"Neither the SECP nor the NECL has ever approached us to discuss the merits, demerits or the implications of starting futures trading in yarn.
"In our view, no unilateral decision can be acceptable to the Aptma," he said.
Monnoo said that the NCEL had no expertise in this regard and to entrust them with yarn trading would not bode well for the textile industry.
"Textile is a very important part of Pakistan's economy, which contributes heavily in terms of employment, exchequer and exports," he said.
The Aptma chief said he himself had no knowledge of the NCEL, its operations or capabilities and certainly would not want them to indulge in our primary manufacturing items without consulting the Aptma and all the other relevant stakeholders, who had an inherent and vested interest in the industry.
He questioned that if at all there should be yarn futures, why should the NCEL start futures trading and "we should explore other institutions who may be more capable to undertake this task."
The Aptma Chairman strongly opposed this unilateral decision, taken by the SECP, and suggested to debate this issue with the Aptma so that a thorough study could be undertaken on the implications of yarn futures trading.
He also requested that any study on the implications, which had been carried out by the SECP/NCEL, might be provided to the Aptma for its comments.
He also invited Dr Tariq Hasan to visit the Aptma to have an opportunity to hear the views of the textile industry.
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