Wagah land route: PHMA asks cabinet to allow import of low-cost cotton, yarn from India

LAHORE: Pakistan Hosiery Manufacturers & Exporters Association (PHMA) zonal chairman Faisal Mehboob Sheikh and chief coordinator Adil Butt on Thursday asked the federal cabinet to allow import of low cost cotton and yarn from India through Wagah land route, as the ECC has already given its approval in this regard with a view to providing level-playing field to the value-added knitwear industry.

In a joint statement, PHMA leadership asked the Prime Minister of Pakistan Imran Khan and his team to take this bold decision which is vital for the smooth running of the industry.

Faisal Mehboob Sheikh said that the decision to lift the ban on import of cotton and yarn from India will greatly support the country’s value-added knitwear sector, besides contributing towards stabilizing the national economy through uplift in export.

He said that local production of cotton was not sufficient to meet the domestic demand of the textile Industry. Hence, the knitwear sector suggests the cabinet to allow duty-free import of yarn from India so that exporters could achieve their production targets.

He said that it was most crucial to allow import of cotton yarn from neighbouring country through Wagah border as the quality yarn is not available and prices are also multiplied to manifolds.

He demanded that the government to also abolish all duties and taxes on import of Cotton yarn from everywhere, as it is the raw material of value-added textile sector in order to sustain and achieve milestone in enhancement of exports.

Moreover, to turn vision of the Prime Minister for enhancement of exports into reality and to control the declining trend in exports, the government should freeze the special tariffs of 7.5 cents for electricity and $ 6.5 for gas for at least next three years and provide uninterrupted electricity and gas, providing level playing field and competitive environment to enhance their export efficiency and materialize all exports orders.

The value-added knitwear sector emphasized that the vision of Prime Minister Imran Khan for industrialization, increasing exports, creating trade surplus, generation of employment opportunities and earning precious foreign exchange shall become possible only when raw material cotton yarn and uninterrupted supply of utilities is ensured on special tariffs approved for export-oriented industries.

Copyright Business Recorder, 2021