20000310

Ban on yarn

export demanded

KARACHI: The Vice Chairman, Pakistan Commercial Exporters of Towels Association Ali Ashraf Khan, in a statement said the valued-added sector of textile is facing a great crisis for non-availability of good quality cotton yarn to the local industry.

The irony of the situation is that yarn is cheaper in the foreign markets and costlier in Pakistan market. A quality 20/S yarn is being exported at $2.17 per kg. Inclusive of freight component of 40 cents kg. While the inferior quality yarn of 20/S is available to Pakistani manufacturers at Rs 51.50 per pound ex-stock.

The end result of this situation is that the value-added sector of Pakistan is not able to compete in the foreign markets and earn much more foreign exchange than what the exports of raw material could bring.

The government is therefore urged to ban the export of yarn and cotton till such time the local requirement is met first.

The Vice Chairman urged the government to discontinue forthwith the discounted rate of refinance facility to exporters of yarn and impose 10 percent duty on export of cotton yarn.ÑPR