20000323

Prgmea backs Aptma

demand for cotton at

local market price

RECORDER REPORT

KARACHI: The Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) has supported the APTMA' demand that it is ready to accept restrictions on the export of yarn provided the Trading Corporation of Pakistan agrees to sell the cotton to the spinning mills at market price.

Javed Chinoy, Chairman, Prgmea (central) said in a statement that as the spinners did not want the cotton to be exported, the made up sector did not want unlimited export of yarn. He contradicted the spinners' claim that they were selling yarn to our overseas competitors at a price higher than the local market and said that the anti dumping duty imposed by Japan was a proof to belie the spinners assertion.

The Prgmea chief pointed out that the textile made up sector was being penalised by the unrestricted export of yarn in two ways. Firstly the local yarn availability was restricted and more importantly our overseas competitors get cheaper yarn and were able to compete thus reducing the already low level of exports from Pakistan.

Javed Chinoy also contested the Governments contention that free market forces should be allowed to take their course and said that every government should adopt policies taking cognizance of the local conditions especially relating to employment generation. He said that even the strong proponents of free market i.e. the US and EEC countries impose restrictions on import and export based on their economic interest. The quota restrictions imposed on the textile made ups were a clear proof of this.

He said that in every meeting and in statements the government ministers openly stressed the importance of value addition in exports and the Government never denied this basic truth. The Prgmea chief stressed that now was the time for the Government to act in earnest rather than offering mere lip service.