960422

'Duty on import of

polyester fibre will

shatter textile industry'

RECORDER REPORT

FAISALABAD: Chairman All Pakistan Cloth Exporters Association (APCEA) Zahid Anwar fears that imposition of duty on import of polyester fibre would shatter the crisis-ridden textile industry, and once again cause closure of sick units which have been revived as a result of bumper cotton crop this year.

Talking to newsmen here on Monday, the APCEA chairman said that a strong lobby of polyester fibre manufacturing plants established in the country was manoeuvring to get imposed duty on import of polyester fibre in the country. By making the import of polyester fibre costly, these local units intend to raise the price of their own manufactured fibre. The price-hike in polyester would lead to a chain reaction of price raises in export of cloth and value-added items like t-shirts, readymade garments, bed sheets and madeup.

He took exception to the present cotton policy whereby export and import of cotton in the country are allowed simultaneously. "As a result, the prices of raw cotton in the country have soared from Rs 1800 per maund to Rs 2500 per maund within a short span of 2 months. This has resulted in creating shortage of raw materials in the spinning sector," he__ said.

He said that, in view of bright cotton crop in the country this year, nearly 150 sick textile units had revived and have started production as they were getting raw materials at reasonable price. "However, if import duty being manipulated by the local polyester manufacturing units was imposed, these units would again go sick and the industrial process in the country would suffer a setback once again," he said.

The imposition of duty on import of polyester fibre, he said, would not yield any substantial revenue to the government. Instead, it would create difficulty for the exporters of fabrics made from cotton and polyester yarn. The unrestrained export of cotton would creat vacuum in the supply of raw material for the spinning sector. And if the import of polyester fibre, which is an alternate raw material for the industry, was made costlier by imposition of import duty, the textile sector would once again face crisis, he said.

Zahid Anwar urged upon the government not be lured into the manoeuvring of the local polyester fibre mills and refrain from imposition of import duty on polyester fibre in greater national interest.