Chairman, Pakistan Apparel Forum (PAF), Muhammad Jawed Bilwani, has said that the government had announced measures without taking Economic Co-ordination Committee (ECC) nod.
Referring to Ministry of Finance Notification SRO 1055(I)/2015 dated 30th October, 2015 imposing 10 percent Regulatory Duty on import of cotton yarn, he said that the government had also bypassed ministry of commerce and ministry of textile in taking the decision it was most surprising that the government announced this measure all of a sudden before the meeting of the Economic Co-ordination Committee (ECC) without taking it's approval and inputs and without taking on board important ministries such as Ministry of Commerce, Ministry of Textile and Ministry of Industries while taking such an important decision affecting the economy of the nation.
The case of Anti Dumping against import of Indian cotton yarn is still pending with the National Tariff Commission (NTC) but the government, without consulting the NTC has imposed 10 percent Regulatory Duty on import of cotton yarn from 1st November, 2015, which action is not at all understood.
The government should thoroughly investigate the fabric imported from Dubai which is of Indian origin and demand from the exporters of Dubai the Certificate of Origin of the fabric imported into Pakistan because it is a well known that there is no manufacturing units of fabric in Dubai and Indian fabric is imported to Pakistan via Dubai. It is imperative that the government should stop import of Indian fabric from Dubai as large number of weaving units in Gujranwala, Faisalabad, and Lahore are non-functioning due to unbridled import of Indian fabric via Dubai.
From the recent relief measures by the government of Regulatory Duty on yarn import; Long Term Financing (LTF) and Export Refinance (ERF), it is clearly evident that the government is pampering the Large Size Units and It is indeed a great irony that thousands of Small and Medium Size Units - Garment manufacturing export sector which carries out the largest amount of value addition 846 percent has been deprived because 90 percent of Small and Medium Size Units do not take LTF and ERF.
Bilwani stated that Haroon Akhtar Khan, the Special Assistant to the Prime Minister on Revenue himself is of the opinion that Raw Material - Cotton Yarn must not be exported and remain in Pakistan for the domestic consumption for value-added goods for exports.
It is also pertinent to note here that Pakistan's cotton production was decreased by 10.38 percent to 1.10 million bales in 2014-15 over 2013-14 comparison (Supporting attached - Source: Foreign Agricultural Service/USDA).
In case the government desires to continue the 10 percent regulatory duty on import of cotton yarn, Bilwani said that the government which is all powerful should also impose 10 percent regulatory duty on export of cotton yarn under PCT Code 52.05; 52.06 and 52.07 because under the prevailing circumstances, the vital value added textile export sector who earn largest amount of foreign exchange for the nation and generates huge employment, would be completely ruined. - PR