Value added textile sector oppose additional import duty on Indian yarn

KARACHI: The value added textile sector has expressed their apprehensions at the proposal of the business friendly Government to impose additional import duty on import of cotton yarn from India.

Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum asserted that already there was 5.0 percent import duty on import of cotton yarn which too should be withdrawn and again this proposal for imposing additional duty at the behest of some large spinners having integrated units would further increase the cost of doing business of the vital Value Added Textile Sector whose exports earnings were $11.49 billion more than that of these spinners.

He really wondered why the vital stakeholders were not being taken on board before deciding such crucial matters.

He revealed that the spinners lobby always voiced their vociferous support for free market mechanism and no rein on imports of cotton yarn nor any duty on import of cotton yarn while now to benefit themselves they are misguiding the Government to impose additional duty so that the Value Added Textile Sector will find it expensive to import yarn from India which otherwise they could import if there is absolutely no duty imposed by our Government thereby greatly enhancing their exports.

Since the Value Added Textile Sector will be unable to import cotton yarn from India owing to the current 5% import duty and proposal of additional import duty, this will greatly increase their cost of doing business and make it tough for them to face global competition while in turn will enable the spinners to increase their sales locally at prices they demand.

He said that we, the Value Added Textile Export Sector, fail to understand why and what protection is being given to the Spinners by the Government and It is actually the Value Added Textile Export Sector which contributes more than 80% of total textile exports of the nation and generates huge employment 38% of the total employment of the nation, needs protection.

While concluding he said that textile exports of Bangladesh stood at $24 to $25 billion despite the fact that they did not grow cotton and imported yarn.

All over the world export of Raw Material is greatly discouraged and restricted while import of Raw of Material is always allowed just because of value addition and earning of more foreign exchange . In comparison to this, in our country most unfortunately it is the opposite and essential Raw Material for value additions is allowed to be exported.

He asserted that the Value Added Textile Sector should be allowed duty free import of raw material without any hurdles. Spinners should endeavor to be become more efficient and duty should be imposed on export of yarn and not on import because nowhere in the world duty is imposed on import of raw material.

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