Thousands of factory workers and owners jointly took out protest rallies, blocked the traffic on Sheikhupura Road and Millat Road and burnt an office of Faisalabad Electric Supply Company (Fesco) situated at Raja Road, Gulistan Colony. However, employees working in the building succeeded to save their lives.
At various places police resorted to lathi charge to maintain law and order, and more than two dozen protestors were arrested. The strike was observed by 300 home textile manufacturing units, 450 textile printing mills, 1100 hosiery units, 300 dyeing units, 400 sizing units, 500 stitching units and hundreds of small ancillary unit.
Thousands of workers of these units came out of their factories in Khurrianwala industrial belt carrying black flags with protest written on them and banners and placards of 'Save the value-added industry', 'Save the country' and 'Immediate ban on export of yarn and cotton'. The workers proceeded to main Chowks of Sheikhupura Road, blocked traffic, and raised slogans demanding ban on export of cotton and yarn.
Chanting slogans, the protest rally marched towards Millat Chowk and joined the hosiery workers' rally. These rallies blocked traffic and burnt tyres. Police restore to lathi charge, injuring 10 workers and taking into custody 20 workers. From Millat Chowk, the rallies marched towards District Council Chowk where rallies from other parts of the city like Jhang Road, Samundari Road, Sargodha Road and Jaranwala Road also joined.
At District Council Chowk, sit-in and a demonstration was held. Here the rally was addressed by the leaders of value-added textile associations. Chairman of Pakistan Textile Exporters Association Khurram Mukhtar said that cotton and yarn were the basic and most essential raw material of the value-added sector constituting 40 percent of total input.
The value-added textile industry is unable to operate if this basic raw material is not available. Over the last one year not only the prices of cotton and yarn have high jumped but also the commodities are not easily available in the domestic market, as the spinners have hoarded huge quantities for export purpose, he said.
This export of life line raw material of the value-added textile industries to Pakistan's rival countries is strengthening their industrial and export sector while the home industry is strangulated for earning few dollars. "We are not struggling for our own benefit but we are fighting for national cause".
He said that if the whole industry collapses, 18 million workers and their families would be deprived of their bread and morsel. Rather the daily wage earners and workers are inclined towards suicides. Muhammad Akram Ansari, chairman of standing committee of National Assembly demanded total ban on export of yarn and cotton to sustain the national economy and value-added textile industry in the country.
He said, that value added industry was lifeline and backbone of the national economy. This sector is earning 60 percent of total foreign exchange of the country while the 40 percent of the labour force is being employed by this sector. The government has not paid heed to this sector, which enjoys the vital importance in the economy and provides millions of jobs to labour force. Furthermore the government has added burden on the textile sector due to heavy load shedding resulting in reduced productivity and out put of manufacturing unit, he said.
The matter has been complicated by a vested group of unpatriotic elements. They have exported cotton and yarn at the cost of the domestic industry. "They have provided cheaper raw material to our business rivals, strengthening their industry and destroying home industry," he added.
Regarding scarcity within the county as well as skyrocketing prices in domestic markets, he said that value-added sector has been drawing attention of the government towards this serious problem for a long time but the government did not pay proper attention towards this crisis. He said that the situation has become so dismal that the vale-added sector has been constrained to resort to strikes and protestation.
He warned that if value-added industry closed down a new storm of unemployment would be unleashed and whole situation would become topsy-turvy. He stressed upon the government to come out of the dreams and to take practical measures to save this precious foreign exchange sector.
He warned that in case value-added sector faced the disaster then the county would also suffer irreparable damage. In Multan, more than 60,000 power looms and textile value-added units remained closed as workers and owners of power looms observed strike, organised a rally, and set up a hunger strike camp to press the authorities for acceptance of their demands and protesting against the unavailability and high prices of cotton yarn.
The rally was led by Khaliq Qandeel Ansari Secretary General of All Pakistan Power Looms Association (APPLA). He said, "We are forced to observe the strike today across the country and we would hand over the keys of our industry to prime minister because the entire textile industry, except spinning sector, is sinking." He threatened to extend the strike for indefinite period.
He appealed to the government last week to impose a ban on the export of cotton yarn and raw cotton, otherwise the entire value-added textile sector would be forced to close. He said: "Only two months are left in the arrival of the new crop, but we are still awaiting some relief."
He added that only he suffered a loss of $1.8 million during last nine months due to unavailability of yarn. Muhammad Asim Shah, a leader of value-added textile forum (VTF), said that the government should not change the industry into graveyards and render 18.1 million workers jobless.
He said that chairmen of at least 16 value-added textile associations, including Pakistan Apparel Forum (PAF), Towel Manufacturers Association, Council of Loom Owners Association, Pakistan Textile Exporters Association, Pakistan Cloth Merchants' Association, All Pakistan Sizing Industry Association, Pakistan Cotton Power Loom Association, All Pakistan Textile Processing Mills Association, Pakistan Knitwear and Sweater Exporters Association, Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Denim Manufacturers and Exporters Association, All Pakistan Bed Sheet & Upholstery Manufacturers Association, Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) and Pakistan Cotton Fashion Apparels Manufacturers and Exporters Association (PCFA) are unanimous to observe the strike.
Asim briefed the newsmen that more than 18.1 million people would be rendered jobless with the closure of value-added sector like garments manufacturers, hosieries, towel, napkin, bedware, tableware and other value-added items and Pakistan would lose 60 percent of textile economy because value-added sector brings 10 to 12 dollars for while cotton exporters earn only 2.5 to 3 dollars.
He said that if a ban on export of cotton yarn, up to 32 single counts, was not imposed or regulatory duty was not imposed by the Cabinet Committee on Textile, all value-added textile units would have no alternative but to resort to complete shutdown as a mark of protest.
He expressed strong reservations about the government's inactive policy, lack of concern and unrealistic and impracticable decision of the Cabinet Committee on Textile to abolish duty on the import of cotton yarn. Production of cotton crop has declined globally, showing shortfall of 4.8 million bales. World's largest exporters of cotton yarn are China, India and Pakistan.
Last year, the world was faced with recession while production of cotton was sufficient, he added. However, this year, cotton production has declined. Last year, local consumption of cotton yarn was 80 percent of the production while 20 percent was exported.
During financial year 2008-09, 480 million kg of cotton yarn up to 32 single count was exported, meaning 40 million kg per month, while this year export of cotton yarn is around 60 million kg per month. "This means almost 50 percent of cotton yarn up to 32 single count has already been exported," Asim said, "It is an irony that while cotton yarn is being sold locally to the value-added textile sector at $2.35 per kg, it is exported at $1.92 per kg."
He rejected the decision of the cabinet committee to scrap duty on import of cotton yarn, calling it an eyewash as cotton yarn could be imported by value-added textile exporters under the duty and tax remission for export (DTRE) scheme. Asim said that members of Value-added Textile Forum (VTF) have unanimously demanded a ban on export of cotton yarn up to 32 single count, otherwise the industry would be shifted to Bangladesh, Jordan, Sri Lanka, Egypt and other countries.
He suggested that the government should encourage export of cotton yarn of above 32 single count as much as that could be exported. "On the one hand, the government is wooing foreign investors while doing everything possible to drive local investors away," one participant of the meeting said.
Asim said that with the export of yarn the fertiliser subsidy provided by the government to the farmers is being passed on to Pakistan's competitors, China and Bangladesh. He said the spinners in a meeting with the Trade Development Authority of Pakistan (TDAP) had agreed on capping yarn export, but later they backed off, leaving the value-added sector with no option but to go on strike.
He said with the closure of value-added textile mills, all chains connected with that business would also be shut down. He called the dispute between the spinners and the value-added sector an economic massacre of 2.5 million workers who are employed in the industry.
All associations of value-added textile sector, according to him, urged the government to strictly maintain the benchmark of monthly cotton yarn export to 35 million kilograms to avert serious crisis to value-added sector, which is already facing high pressure to survive.
In Lahore, owners and workers of thousands of value added textile factories held countrywide strike to press for their demand for a complete ban on the export of yarn, the basic input material for the local industry.
A spokesman of the value added sector said that over 12,000 value-added units including towel, cloth, hosiery, readymade garments, fabric, bedwear, looms, sizing, cotton fashion and processing stopped production throughout the country as a mark of protest against non-availability of raw material (cotton and cotton yarn).
They took out protest rallies in the major centres of value added textile products, and elsewhere demanding complete ban on export of yarn so that value added products could be exported, employment of skilled and semi-skilled workers should sustain and more foreign exchange could be earned.
They said that value added textile sector is the largest employer of the manpower in the country. "On the other hand by exporting yarn to Pakistan's competitors we are promoting employment for those nation and also strengthening them to be able to give hard time to Pakistan in the markets of USA and Europe," they added.
They said the value added sector has been crippled by prolonged load shedding hours, energy crisis, and shortage of raw material and the government has failed to solve any of these problems. "Non-availability of yarn has put our value added sector to corner; government should realise sensitivity of the issue and impose complete ban on the export of yarn, which is a badly needed not only for running wheel of the textile industry but also to keep hundreds of thousands of workers on jobs.
Thousands of industrialists and factory workers participated in the peaceful rallies throughout the country and chanted slogans in support of their demands. They were holding placards and banners demanding from the government immediate action to resolve the yarn crisis otherwise, it will be too late as thousands of workers could lose their jobs. On the other hand All Pakistan Textile Mills Association Aptma claimed that the spinning industry is providing cheapest yarn to the domestic industry as compared to its competitors ie India, China and Bangladesh.
In a statement it said any move to impose regulatory duty on the export of yarn will render closure of 70 percent of the spinning industry, providing yarn to the whole value added industry, Aptma is left with only 15 days' cotton and it has to import cotton from international market at world prices of 95 cent per pound for next 90 days till the new domestic cotton arrives in local market.
It said regulatory duty on yarn export will disrupt the entire textile value chain, there the government should continue the free market mechanism. In Karachi, the value-added sector industrial units remained closed to protest against export of yarn and to press the government to impose ban on its export.
Around 1300 to 1400 industrial workers gathered at the office of Site Association of Industry (SAI) along with factories' owners to show strength and record protest. Likewise, around 3000 to 4000 industrial workers gathered outside the office of Federal B Area Association of Trade and Industry (FBAATI), and similar number of industrial workers gathered at North Karachi Association of Trade and Industry (NKATI), beside units' owners.
The workers chanted slogans against export of yarn, and demanded ban on its export to keep local value-added industries operating. They expressed fear that they may lose their jobs with closure of the value-added industries. However, the demo remained peaceful and no report of any untoward incident was received from any industrial area.
Alkaram Industries, Mehtab Chawla and Chairman Site Super Highway, Mohammad Ilyas demanded of the government to impose export duty on export of yarn to curb its export. They urged the government to save the value-added sector from collapse. The industrialists were of the view that it is a token strike and value-added sector may decide to go on indefinite strike on government's failure to stop yarn export.
Chairman of FBAATI, Shahid Ismail, said that in his industrial area around 70 percent industrial units are of value-added sector and claimed that all of them remained closed in protest against export of yarn. He said that cotton is white gold and its must not be exported in raw shape. It should be exported after value-addition. He said that the government should provide level playing field so that the value-added sector should get yarn at reduced price.
Chairman of SAI, Salim Parekh, said industrial units in his industrial estate remained closed to record protest against export of yarn. He urged the government to save the value-added industry from closure and layoff of workers. He demanded of the government to impose ban on export of yarn.