Pakistan's value added sector opposes yarn import duty

20 Aug '15

2 min read

Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has rejected the government's plan to impose import duty on cotton yarn saying it would pose negative impact on the value-added textile sector, the Pakistani media has reported.

PHMA chairman Usman Jawaad observed that the Federal Board of Revenue (FBR) was considering the move in the name of 'protecting spinning sector'.

He strongly opposed this move and said that PHMA stands with Pakistan Readymade Garments Manufacturers and Exporters Association, Pakistan Apparel Forum and all other business associations who have already expressed their resentment at the proposed move.

“Value-added textiles in general and the apparel sector in particular are under severe pressure due to fierce competition in the international market being faced from countries like Bangladesh, Vietnam and Cambodia,” said Jawaad. Squeezing the apparel manufacturers would lead to a decline in export earnings coupled with unemployment, he said.

At present, importers are enjoying zero customs duty on yarn import from India. The value-added sector prefers Indian yarn as it is cheaper than Pakistani product and has good quality due to long staple, which is used for lawn and other cloth manufacturing.

The European Union's GSP Plus facility has provided breathing space for the apparel sector, which has been able to increase exports at a time when overall shipments from Pakistan are falling.

“In such a situation, any policy adversely affecting the apparel industry will have a direct and immediate negative effect on overall business activities since this is the largest employing sector of the country,” Jawaad added. (SH)

Fibre2Fashion News Desk – India

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