Governor of Punjab, Salmaan Taseer, is soon to convene a meeting with the representatives of the apparel sector, concerning the issue of quota restrictions on export of cotton yarn. Rana Farook Saeed, Federal Minister for Textile, is also to attend the meet.
Earlier, Governor had meetings with the representatives of the spinning industry. These meetings were followed by the Governor's meeting with Federal Minister for Textile Rana Farook Saeed and Federal Textile Secretary, which were outcome of the directions given by the President Asif Ali Zardari, who on the first day of strike observed by 350 spinning mills on March 18, intervened in the matter.
It is noteworthy that strong objections followed from the side of All Pakistan Textile Mills Association (APTMA), as the Ministry of Textile (MinTex) which initially capped exports of cotton yarn at 50,000 tones per month, further reduced the ceiling to 35,000 tones per month. A controversy has stirred up and the Governor of Punjab is required to put forward his recommendations before the President, suggesting the future course of action.
Sources from spinning industry divulged that, from the recently held meeting, it clearly follows that, the Federal Textile Minister has been holding a partial and prejudiced attitude, favouring the downstream industry.
They also apprehended that the Federal Minister's sole agenda was to influence the yarn prices to the benefit of apparel sector, thereby distorting free trade mechanism. They held that APTMA was pushed to the wall as MinTex annulled the free market policy which was in existence for 16 long years and all this was just for the sake of benefiting the apparel sector.
Further allegations followed from the side of spinners that, the industry is confronted with a crisis like situation as the Federal Textile Minister did not succeeded in balancing out the situation. According to them, leading exporters like Nishat, Gul Ahmed, Saphire, Al-Karamn and Younas, who exported over 50 percent of the value-added garment, were all members of APTMA.
Rather they opined that, the line of Pakistan Readymade Garments & Manufacturers Association (PRGMEA) and Pakistan Hosiery Manufacturers Association (PHMA) was blindly being toed by the Minister.
Fibre2fashion News Desk - India