April 15, 2021: Textile exporters appeal the Government to allow duty free import of cotton yarn till time the government achieves its set cotton production target of 10.5 million bales.

To ease down the cotton yarn availability crisis, it is also imperative that to also place ban on export of cotton yarn from Pakistan or impose 10% duty on export of cotton yarn from Pakistan.

The government should take measures to import cotton yarn safely from Central Asian Republics through land route by activating all the transit trade agreements signed with regional countries as the sea route is taking prolong duration due to shortage of containers and vessels.
The textile exporters once again request the Government to take cognizance over hoarding of cotton yarn and cartelization by concerned which are actionable as per law under the Price Control and Prevention of Profiteering & Hoarding Act 1977 and Competition Act of Pakistan 2010.

According to the said Act of 1977 cotton yarn is included in the schedule of essential commodities like sugar, wheat, edible oil etc.

Therefore, the Government must immediately take action as per the law against spinning mills and  yarn traders involved in monopoly, abusive dominance for exorbitant pricing and hoarding and immediately conduct raids by arresting the culprits and seize the hoarded cotton yarn and also conduct Forensic Audit on the pattern of sugar crisis that will prove it many times bigger scam than the sugar scam as it is learned that approx. 2 million bales have been sold without sales tax and invoices in the local market.

Value-Added Textile Exporters convey sincere gratitude and thanks to Prime Minister Imran Khan, Adviser Commerce Razak Dawood and Federal Cabinet on the ECC for according genuine consideration to the demand of Value Added Textile Export Sector to allow duty free import of cotton yarn till June 30, 2021 which exporters were demanding since October 2020 due to unavailability of cotton yarn in the local market. The belated decision, however, shall provide only partial relief in the wake of sea trade congestion as the shipments are taking more than two months time to reach Pakistani ports.

This joint statement was issued by the Value Added Textile Sector Associations: Jawed Bilwani, Chairman, Pakistan Apparel Forum, Waheed Khaliq Ramay of Power Looms Owners Association, Ijaz Khokhar, Chief Coordinator & Ex-Central Chairman, Pakistan Readymade Garment Manufacturers & Exporter Association, Riaz Ahmed, Central Chairman Mian Farrukh  Iqbal, Senior Vice Chairman, Pakistan Hosiery Manufacturers & Exporters Association, Syed Aasim Shah, Former Chairman, All Pakistan Bedsheets & Upholstery Manufacturers Association, Rafiq Godil Chairman, Former Chairman, Pakistan Knitwear & Sweaters Exporters Association, Dr. Shahzad Arshad, Chairman, Pakistan Cotton Fashion Apparels Mfrs. & Exporters Association, Aamir Lari, Vice Chairman, Towel Manufacturers Association of Pakistan, Abdus Samad, Chairman, Pakistan Cloth Merchants' Association.

Press Release

40715