KARACHI: All Pakistan Textile Mills Association (Aptma) has rejected proposal of allowing import of cotton yarn from India and said that there is no shortage of yarn in the country.
Zahid Mazhar, Senior Vice Chairman Aptma, while commenting on the statements of some of trade bodies has said that their narrative is not based on facts and they are misleading the government and the authorities concerned as there is no shortage of cotton yarn in the country.
He said that allowing import of cotton yarn from India would create a crisis for the spinning industry of Pakistan and lead to closure of spinning mills, on the other hand, it will strengthen the economy and the spinning industry of India.
He highlighted that India has been violating all the resolutions passed by the UNO and other international organizations and has occupied Kashmir and the people of Kashmir have not been given their legitimate right of living independently. Allowing Indian yarn would be like adding insult to their injuries, he added.
Mazhar pointed out that during the period from July 2020 to December 2020 as per the data released by Pakistan Bureau of Statistics; total production of cotton yarn was 1,715,665 tons compared to the corresponding period of last year when 1,714,175 tons was produced in the country.
In addition, out of the total production of yarn only 10 percent was exported in the first half of the current financial year whereas 90 percent was available for the downstream industry out of which the domestic downstream industry consumes only about 70 percent and the balance 20 percent remains as surplus. Moreover, the exporters are allowed to import duty free cotton yarn under DTRE, export oriented and manufacturing bond schemes from abroad if they find the local yarns expensive.
He added that the real problem was the shrinkage of the local cotton crop which has witnessed a massive decline over the last few years and this season’s projected production is the worst ever at about 5.5 million bales as against the annual consumption of cotton over 15 million bales and the best crop figures achieved of 14.5 million bales.
Copyright Business Recorder, 2021