Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has
said that it is very unfortunate that no concrete policy to enhance production
of cotton has been announced by the government yet, as the rate of cotton
has touched the record 11-year high of Rs12,000 per maund. PHMA zonal chairman Faisal Mehboob Sheikh and chief coordinator Adil
Butt observed that the country is expected to produce 5,600,000 bales this
year, which is lowest in last 30 years while the demand of local textile
industry is almost 18,000,000 bales. So, keeping in view of the demand of
local textile industry more than 8,000,000 bales of worth 4 billion dollars
will have to be imported.
Faisal Mehboob Sheikh said that reason behind unprecedented increase in
the cotton prices is alarming decline in the cotton production and bullish
trend in the international cotton market, appealing to the Prime Minister
Imran Khan to immediately formulate a strategy to overcome this cotton
yarn crisis so that thousands of workers could continue their employment
in the largest export industry of Pakistan.
He also suggested the government to remove custom duty on yarn import,
as its shortage has increased seriously despite removal of 5% regulatory
duty. “We appeal the government to withdraw 5% Customs duty on yarn
import following the abolishment of Regulatory duty in view of controlling
shortage of apparel industry’s raw material.
PHMA also urged the government to impose a complete ban on export of
cotton yarn up to 30 counts till the sufficient raw material is available to the
industry. It will be positive for the apparel industry to convert it into valueadded goods, exporting them in the international market instead of raw
cotton yarn, he added.
PHMA chief coordinator Adil Butt applauded the government’s incentives
and support to the apparel exporters, who succeeded in enhancing textile
exports by 7.79% during July-Dec despite coronavirus related restrictions.
He also pointed out that in time decision of the government to open the
industrial sector played a major role in stabilizing the economy in addition
to keeping the jobs intact of the millions of workers.
He observed that the country’s textile exports have shown a jump of more
than 7% in the lead of apparel sector during July-Dec this fiscal against the
corresponding period of last fiscal year. The textile exports earned $7.4
billion in this period compared to $6.9 billion of last year’s Jul-Dec,
including apparel exports growth of 16.5% to $1.8 billion from $1.5 billion
of last year. Adil Butt said that it is absolutely essential to sustain this growth
momentum of exports, as economic activities are largely restored to preCovid levels.
“If the government cannot address the artificial cotton yarn crisis on an
immediate basis, taking no action against this lobby, hundreds of thousands
of workers might lose their jobs,” he warned. He said that the manufacturers
have started hoarding yarn, creating a shortage of cotton yarn, resulting into
unprecedented hike in its prices, causing severe difficulties for the valueadded knitwear industry, which is unable to fulfill their export orders. If the
cotton yarn crisis continues and import of cotton yarn is not allowed from
the Wagha border, Pakistan’s growing economy will once again reach the
brink of collapse.
Source: The Nation, Pakistan Monday, 01 March 2021