KARACHI: The availability of the cotton yarn in the local market is already very low which poses as a huge challenge for the apparel sector. In these circumstances, a 35.86 recorded increase in the cotton yarn export is making a layer of panic go through the apparel makers. These apparel makers are already seeking a ban on cotton yarn export as this premium raw material should be utilized by Pakistan to manufacture high value added products like garments which will in turn in earning foreign exchange.
“The value added products of knitwear, bedwear, towel and readymade garments have witnessed a decline of 26.14, 7.35, 11.36 and 0.42 percent respectively in February 2021 compared to January 2021. The rising volume of export of cotton yarn had deteriorated apparel sector’s growth as the country continued to face energy shortage., said Pakistan Apparel Forum chairman Muhammad Jawed Bilwani.
The government should also abolish the existing five percent customs duty on import of cotton yarn below 40 single count. Cotton yarn prices surged 40 percent, but even at that exorbitant rate it was unavailable on the local market, he added.
“The situation has also compelled the exporters not to take new orders and for that reason such export orders meant for Pakistan shall be diverted to other regional countries. The dollar had depreciated against the rupee by seven percent, which was also a matter of concern for the exporters as the situation might lead to a liquidity crunch .”, Bilwani said.
