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Courts grant relief to EOUs from cap on yarn exports
Mar '10
In order to get a relief from the government policy of restricting yarn exports to 35 million kgs, the export-oriented units (EOUs) had approached the Lahore High Court. Now, the high court has granted relief from quota on exports to 15 spinning EOUs.

Earlier on hearing the same type of petitions, the Peshawar High Court had provided relief to four EOUs in Northwest Frontier Province (NWFP) and the Sindh High Court had ruled in favour of seven other units.

It may be recalled that the government had capped yarn exports at 50 million tons in January, but due to incessant pressure from the value-added sector, had further restricted yarn exports to 35 million kgs in March.

The All Pakistan Textile Mills Association (APTMA) called the latest decision of the government as unfair to the spinning sector and demanded a roll-back of the policy and a free trade mechanism rather than capping exports of yarn.

Fibre2fashion News Desk - India

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