KARACHI: Apparel textiles makers-cum-exporters on Tuesday asked the government to permit the import of duty-free cotton yarn, as the industry is clamoring over shortage of the main input.
They said cotton yarn supplies are short in the local market for making apparels in the face of ‘huge’ export orders in place.
The existing available stocks of cotton yarn, they said, are the poor quality to help any sort of apparels manufacturing for export purposes. Cotton yarn dearth on the local market, exporters said, made the industry unable to ‘meet export commitment.’ Short supplies are said to have pushed upward the cotton yarn price by over 9 percent in Jan 2021 from Oct 2020.
Pakistan Hosiery Manufacturers and Exporters Association (PHMA) said it has already demanded the government to help ensure the cotton yarn supplies through duty-free import to the industry.
In response to the demand, PHMA said “nevertheless, government considered removing the Regulatory Duty only,” which the apparels makers to some extent.
The price hike is believed to have soared the cost of textile manufacturing, turning the export unviable and uncompetitive.
“The situation demands that the government should immediately abolish customs duty on import of cotton yarn either by passing through a presidential ordinance or by an immediate act of the Parliament, in the interest of export and the country,” Chairman, Pakistan Apparel Muhammad Jawed Bilwani demanded.
The government should prioritize the matter to help stir its policy of enhancing export into a reality, he said.
“The government should remove 5 percent Customs duty on import of 32 single yarn and below count. Exporters, manufacturers and importers should be given a complete liberty to import yarn from any country till the scarcity of cotton yarn is arrested and required quantity of yarn is available in abundance in Pakistani markets to help complete export orders smoothly,” Bilwani added.
Copyright Business Recorder, 2021