RECORDER REPORT

KARACHI: Value-added textile sector has opposed the government’s proposal of imposing 5 percent duty on import of cotton yarn, fearing the move will further increase cost of business with costlier raw material.

Chairman Pakistan Apparel Forum (PAF), Javed Bilwani, on Thursday said the government should discourage export of cotton yarn, which is produced through expensive gas and electricity amid shortage of energy in the country.

“Manufacturing of cotton yarn involves costly gas and electricity and export of this essential raw material, which is used in the value added textile sector production, should be discouraged,” said Bilwani

He was of the view that the country is already facing acute electricity and gas shortages, adding that the government should help the value-added textile sector to meet its raw material needs, without duties, to achieve export targets under GSP Plus status.

“Some 90 percent of stakeholders of textile sector i.e. value added textile sector support import of cotton yarn without any duty,” he asserted, warning the government that the new imposition will have negative impact on the apparel textile growth and export.

In 2010, he said the country’s value added textile sector underwent cotton yarn crisis, the 10 percent textile sector stakeholders supported a free market mechanism and export of cotton yarn,

The government should regulate export of coarse count cotton yarn and impose duty, as was done in 2010, to save precious gas and electricity, he demanded, saying the government should support the 90 percent stakeholders who generate 40 percent of the country’s total employment.

“The textile sector, not only contributes largest amount of foreign exchange to the national exchequer but also generates even largest employment of 40 percent of nation’s total employment, whereas 10 percent stakeholders generates only 2 percent employment,” he claimed.