Lahore:  Indian mills were dumping cotton yarn into Pakistan which was why  the government had imposed regulatory duty and this was the only protection available to the Pakistan industry while protecting the rights of genuine value added exporters who could utilise the facility of DTRE to carry on their business unhindered. This policy has proved successful and garment exports have registered a 5% increase. India, on the other hand, has imposed a 26% import duty on Pakistan cotton yarn and unless we get reciprocal market access there is no other way except imposition of regulatory duty on imported yarn, said Tariq Saud, Chairman APTMA. He further said that import for re-export (DTRE) has also shown a remarkable rise increasing by over 800% for which we have no protection. High cost of doing business and tariff subsidy to yarn export provided to yarn exporters of India has also crippled Pakistan textile industry specially spinning & weaving industry. Chairman APTMA urged the government to address the issue of high cost of doing business and immediately remove 4% custom duty and 5% sales tax on the import of cotton which will enable spinning industry function properly instead being crippled further by removal of Regulatory Duty. Free trade in cotton will serve the interests of all segments of the textile chain and also protect the interests of the growers.–Staff Reporter

Pakistan being a key player in cotton needs to remain in line with the international market situation and it is imperative that the stability is maintained so that the entire chain can work seamlessly. The downstream sector must appreciate the Pakistani mills for their commitment as they cannot rely on the Indian mills who have backed out of their contracts due to rise in cotton prices.

Chairman APTMA further said that the rise in the cotton prices is due to a sudden jump in international and domestic prices of cotton.