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Govt caps yarn exports
Jan '10
The relentless pressure from the value-added sector finally forced the Pakistani Government to put a cap on the volume of cotton yarn exports from the country and has been pegged at 550 million kilograms (kgs) for the current fiscal year (2009-10).

Commenting on the decision taken by the standing committees of National Assembly and Senate on Textiles, Senator Gul Muhammad said that the decision has been taken in view of serious problems faced by the textile sector.

He added by saying that note was taken of the average yarn exports of last three years, which stood at 525 million kgs per annum and in view of higher yarn production this year, 550 million kgs has been allowed for the current fiscal year.

China has been a big buyer of cotton yarn from Pakistan in the current fiscal year in order to feed huge requirements from its textiles sector, since raw cotton output is expected to fall by 10 percent in China when corresponded with the previous year.

Meanwhile, the Commerce Secretary, Zafar Mahmood said that putting a cap on export of cotton yarn is against the World Trade Organisation rules and is challengeable and added that though, the decision to limit cotton yarn export is a temporary one, it would, provide relief to the value-added sector.

Fibre2fashion News Desk - India

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