Pakistan hosiery manufacturers against the idea of imposing import duty on yarn

The Federal Board of Revenue (FBR) is considering to regulatory duty on import of cotton yarn as a move to protect spinning sector against this Pakistan Hosiery Manufacturers and Exporters Association (PHMA) have rejected the idea of imposing import duty on yarn as it would pose negative impact on the value-added textile sector.

The GSP opportunity provided a breathing space for the Pakistan apparel export sector which has performed well in the shape of increase in exports at a time when overall exports of country are showing a declining trend. In such a situation any policy adversely affecting apparel export industry will have direct and spontaneous negative effect on overall business activities since this is the largest employment providing sector of Pakistan.

PHMA chairman Usman Jawaad 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 on the proposed move.

Usman also highlighted that all the value added trade associations have been already raising their voice which should not be ignored to avoid disaster of industry.

Usman went on to say that Pakistan’s value added textiles in general and the apparel export sector in particular are under severe pressure due to hard competition in the international market being faced from competing countries like Bangladesh, Vietnam and Cambodia etc.

He added that squeezing the apparel export sector will lead to decline in export earnings coupled with unemployment of labour. The apparel industry adds much more value to the cotton of Pakistan than any other sector of textile industry.

Hence it deserves safeguard of its business environment rather than to frame a policy which will go only to the benefit of spinning sector. Usman said that they therefore demand that any unilateral policy should be avoided and overall national interest should remain over objective while making country’s policies.