Ban on yarn exports: Minister has no regrets

Federal Textile Minister Rana Farooq Saeed has no regrets on subverting free market mechanism, saying it was his decision to impose ban on exports of yarn from the country. He was reacting to media queries during his visit to All Pakistan Textile Mills Association (APTMA) Punjab office Monday.
"Yes, I had imposed ban on yarn exports," he said bitterly when pointed out that he has nothing on his credit as Textile Minister but distortion of free market mechanism. It may be noted that President Asif Ali Zardari had intervened and restored free market mechanism early last year after first-ever countrywide strike by Aptma members. The minister showed more signs of uneasiness when asked why he was carrying an image of a Minister for Faisalabad textile millers only.
"I'm not a minister for Faisalabad textile millers," he clarified, adding: "I'm minister of the whole textile industry." Regarding snail-paced developments on textile industry growth in the country, the federal minister blamed the adverse circumstances, particularly the energy crisis. He criticised the PPP-led government's predecessors for not resolving energy crisis well in time.
"The power crisis is not resolved since last seven years," he said, adding: "However, new power projects, including Neelum Jhelum hydro project and Basha Dam are underway." He further said, the PPP government was co-operating with China on this front and 15 years old issues are likely to be dealt with now. According to him, the issue relating to ownership of coalmines has been resolved and speedy work is expected on generation of power through coal.
About free market access from the EU, the federal textile minister said negotiations were underway and the government was ready to meet all challenges, including energy shortage once it gets go through from the EU. However, he mentioned that the industry was all set to procure 15 million bales this year if there were no floods. He said the cotton growers were likely to enhance cotton production next year after securing attractive price during current year. He said the government was set to import LNG in order to resolve energy crisis. But he did not explain as when the government is starting with its plan on this front.
Speaking on the occasion, Chairman Aptma Gohar Ejaz said there was no need of magic wand to increase exports and only government assurance of stable business environment. He sought support from the minister to get clear stuck up business deals on cotton import from India. He said no tangible development has taken place so far and four months are already lapsed. He urged the minister to lodge protest against the stuck deals for one million bales of cotton equally to what India did on change of route for onion imports.
He also asked the minister to release remaining amount to the industry under 3.5 percent interest rate subsidy through the State Bank of Pakistan. According to him, the industry was ready to investment provided the government was ready to remove irritants in Investment Support Fund to expedite process.
Similarly, Gohar Ejaz also raised tax issues confronting textile industry growth. He also appreciated the efforts made by the federal textile minister on restoration of gas supply to industry, securing five days a week supply through the office of Prime Minister. However, he lamented that the SNGPL was not following the spirit, having suspended gas.
The minister took serious notice of the situation and expressed his readiness to call on MD SNGPL to resolve the issue, followed by another meeting with federal minister for petroleum Naveed Qamar on Thursday. The Aptma members suggested the minister to close gas supply to CNG stations during January and February to tackle the crisis like situation in the industry. The draft law of Federal Textiles Board was also discussed in detail during the meeting.