Karachi - The recent decision of the ECC of the cabinet to withdraw 5pc duty exemption on import of cotton yarn has sounded alarm bells for the value added textile export sector, lamented M. Jawed Bilwani, Chairman, Pakistan Apparel Forum and Chief Coordinator, Value Added Textile Forum.
He said, if the Govt withdraws the 5pc duty exemption on import of cotton yarn, the spinners will have a monopoly to the detriment of the value added textile sector.
The textile sector is already suffering huge losses owing to the appreciation of the rupee against the dollar and now it is strongly felt that with the withdrawal of 5pc duty exemption on import of cotton yarn, they will once again be facing hardships in the form of acute shortage of cotton yarn and prices will also go on the higher side making them uncompetitive in the international market with several adverse factors like rising costs of doing business, energy shortage, poor infrastructure, deteriorating law and order situation etc resulting also in negative impact on exports to EU under GSP Plus.
The value added textile export sector demands that the ECC decision be seriously reviewed and withdrawn and in case the Government desires to impose duty on import of cotton yarn then Government should also impose duty on export of cotton yarn because under the prevailing circumstances, the vital value added textile export sector who earn largest amount of foreign exchange for the nation and generates the huge employment, would be completely ruined.