A while back, the government issued a duty-free policy on the raw materials that were being imported for production in the textile and clothing market. This policy is appreciated by Senior Vice Chairman of the Pakistan Hosiery Manufacturers & Exporters Association (PHMA), Mian Farrukh Iqbal.
Due to a major cut back at the country’s own production of cotton, the textile sector faces fall back when procuring yarn from the local market. Therefore, Mian Farrukh Iqbal has also requested that the government also come up with a zero custom duty on the cotton yarn import as that can help the country in achieving the set textile exports targeted at 50 billion by the year 2025.
“The Government must realize the gravity of this issue to support the Value Added Textile Exports,” he said and further added that as there is no cotton yarn available in the local market, the cotton yarn prices are hitting up every day. As a result, the cost of manufacturing is pushing the exporters towards unviable situation and un-competitiveness.
The exporters fell short on meeting the deadlines that were set to complete the export orders due to unavailability of cotton yarn in the local market. Therefore, it is crucial that the duty on cotton yarn be removed so the textile industry can keep growing at this ample speed says Mian Farrukh Iqbal.
As an agricultural country, Pakistan has taken no sensible steps or actions to improve the production of country’s own cotton supply. If that is done, there will be lesser need to import cotton from foreign countries, he further stated.
