Apparel Forum approaches PM for amendments in export package

Pakistan Apparel Forum, the biggest group of value added textile, has approached Prime Minister Nawaz Sharif to amend the export package by extending rebate to indirect exports (local sales) of yarn and withdrawal of customs duty and sales tax, besides regulatory duty on import of cotton yarn up to 32 single coarse counts.
Pakistan Apparel Forum wrote a letter to the Prime Minister, which was also copied to Minister for Finance Ishaq Dar, Commerce Minister Engineer Khurram Dastgir Khan, Advisor to PM on Revenue Haroon Akhtar Khan and Secretary Ministry of Textile.
The exporters maintained that the apparel exports were to the tune of $5.3 billion per annum. The industry provides directly and indirectly employment to millions of people. However, it is an irony that apparel sector, which is the biggest sector of value added textile, was not taken on board while formulating and finalising the export package.
"Therefore, we would like to draw your kind attention towards some very important matters announced in the Export Package on 10th January 2017," the letter said.
The Forum has proposed following suggestions:
1) Rebate on Cotton Yarn Exports: Pakistan Apparel Forum understands that rebate on yarn exports will benefit their international competitors more who will get cheaper yarn than local industries. This will support their business and would have negative impact on local value added industries. The Forum suggests that rebate on yarn should be given to indirect exports (local sales) instead of direct exports of yarn.
This four percent rebate on the cotton yarn will further lead to unbridle exports of Pakistani precious raw material. In the conversion of cotton to yarn, the major component is electricity after cotton which means electricity is also being exported in shape of export of yarn while the industries here are starving for electricity which will support the Forum's competitors. The government grants four percent rebate on providing raw material, yarn, to Forum's otherwise competitors.
2) Duties on Import of Cotton: The government has withdrawn customs duty and sales tax on import of cotton due to decline in cotton production. Since there is also shortage of yarn in the country, therefore the Forum requests to withdraw customs duty, sales tax and regulatory duty on import of cotton yarn up to 32 single coarse counts which is the major requirement of value added apparel sector.
It further states that the current exports can be boosted to $5 to $6 billion without adding new capacities if supply of gas, electricity, water and other allied infrastructure is provided to the industries without interruption and at price available to the Forum's competitors.
Pakistan Apparel Forum represents the four value added apparel associations consisting of Pakistan Hosiery Manufacturers & Exporters Association, Pakistan Readymade Garments Manufacturers & Exporters Association, Pakistan Knitwear & Sweater Exporters Association and Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association.