FAISALABAD: Decline in exports during second consecutive month is a matter of serious concern for the policy makers as it will foment multiple problems relating to exports, foreign exchange earnings, unemployment and enhanced import of food bill in addition to aggravating law & order situation in the country, said Pakistan Hosiery Manufacturers & Exporters Association (PHMA) senior vice chairman Mian Farrukh Iqbal.
He said the value added textile exports recorded a phenomenal growth as the government provided substantial incentives during the first quarter of this financial year. He particularly mentioned $2 billion increase in Oct 2020 and 2 billion plus increase in the months of November and December, 2020.
He said the value added textile sector has well warned the government about the shortage of yarn coupled with price spiral as the government failed to allow import of yarn through Wahga border.
“Still this issue is irritating the value added textile sector and expected to reverse this positive trend if immediate remedial measures were not taken”, he said and added that we had also presented viable solutions clearly stating that government must allow import of cotton yarn from India through Wagah Border in addition to withdrawing 5 percent custom duty on import of cotton yarn.
He said this crisis was well anticipated due to the low cotton yield but our genuine demand was turned down and now its impacts have surfaced with decline of textile export for the last 2 consecutive months. He also mentioned the figures of Jan 2021 ($1.323 billion) and Feb ($1.234 billion), requesting the government to reconsider their proposal and allow import of Cotton Yarn from India through Wagah Border otherwise entire gains of this government would go to the drain.
He said the value added textile sector is continuously drawing the attention of the government through appeals and press statements, towards the unavailability and shortage of Cotton Yarn which is basic raw material since the last four months but to no avail. “Inconsiderate response by the government indicates its non-seriousness towards enhancing Value Added Textile exports”, he said and warned that the government must be ready to face its trickle down effects in the form of enhanced unemployment and deteriorating law and order situation.
He also urged the government to immediately ban on export of cotton and cotton yarn in the greater interest of value added textile sector.—PR
Copyright Business Recorder, 2021