Exporters-cum-manufacturers of value-added textile sector are worried about the abolishment of negative list of Indian products and unchecked cotton and yarn export would deprive the country of the 'handful' remaining foreign orders for garments.
Talking to the Business Recorder, Chief Co-ordinator, Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Ijaz Khokhar said the textile ministry should start registration of cotton and yarn import and export to asses the commodities stocks in the country.
He said the cotton and yarn export would increase from Pakistan to the global market following the ban by Indian government, which would create shortage of the key textile products at home for value-added textile sector, as a result foreign orders would divert to India.
He said Pakistan could not afford to comply with 'so-called' free market mechanism as it would have negative impact on the country's pivotal garments manufacturing, adding that 50 per cent production of the sector had already reduced in the wake of gas and electricity shortages.
He alleged some elements for their personal interests were promoting the free market mechanism agenda in Pakistan, though such a system would have negative impacts on the country's economy with far-reaching implications in the long-run.
Khokhar said the Pakistani government should undertake registration of cotton and yarn export and import as India had made it for its traders under RC system. "Pakistan needs a policy of protectionism even now with a greater need for the government has already abolished the negative list of products under MFN status allowing its traders to dump their furnished goods in the local market," said the Chief Co-ordinator, Prgmea.
He said China had also a policy of protectionism to safeguard its international trade, adding that Pakistan's economy had a great threat from collapse of value-added textile sector's export, which was on the decline for the last six months of the current fiscal year.
He said the report of monitoring of cotton and yarn export should be made on monthly basis so that the value-added textile exporters could know of the stock of the commodities besides it would maintain their prices on the local market.
He said anything went wrong in the country's policy on its international trade would help India attract the foreign orders and local exporters would be deprived of them and the national exchequer would suffer huge foreign exchange.
"Flow of foreign good had declined for the last six months as gas and electricity shortage has hit the textile production by 50 per cent, and such an opportunity for the international buyers would push them towards India's value-added textile sector," Khokhar lamented.
He said India had not yet reduced duties for Pakistanis textile products under MFN status but Pakistan had fixed only 5 per cent as maximum levy on the same products of Indian brand. He said India had over 45 per cent of duties on textile products for other countries. He said Pakistan had taken a hasty decision without making ground for its export to India.