Yarn crisis may further deepen

ISLAMABAD - The controversy over yarn export quota between the government and All Pakistan Textile Mills Association (APTMA) is feared to further deepen the yarn crisis in the country, TheNation has learnt. The APTMA demands total abolishment of the yarn export quota or increase in the same to a minimum of 50 million kg per month. On the other side, the government is ready to increase the quota from existing 35 million kgs to 40 million kgs per month to protect the value added sector. Federal Minister for Textile Industry Rana Farooq Saeed Ahmad Khan on Tuesday in a meeting with APTMA and Value Added Sector offered to increase the yarn export quota from existing 35 million kgs to 40 million kgs, however, the APTMA rejected the said proposal. On the other hand APTMA is considering many options including moving to the court against the yarn export quota after failure of the negotiations with the government. Meanwhile, sources in the Ministry of Textile Industry told TheNation that it was not in favour of the country to increase the quota to 50 million kgs as by doing this value added sector would suffer a lot. The country had already exported sufficient amount of yarn in the current financial year. According to the sources, the country has already exported 461 million kgs yarn in the first eight months (July-February) of the current fiscal year against 333 million kgs in the same period of 2008-09, which is 39 percent higher. In this period the country exported yarn worth of $956 million against $739 million in the same period of previous year. On the other hand, APTMA already observed a countrywide strike against 35 million kgs yarn export quota, however, they called off the strike after interference of Punjab Governor Salman Taseer on the instructions of President Asif Ali Zardari. After Tuesday meeting, officials of APTMA are considering the option to go to the court against the governments decision of yarn export quota. However, it has not been finalised yet and the final decision in this regard would be made in next couple of days, sources in Textile Association informed. Besides moving to court, APTMA is also considering to observe one off day in a week as a protest against yarn quota.

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