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  • Jan 9th, 2018
  • Comments Off on PRGMEA demands abolition of duties on cotton yarn
Chief Coordinator of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), Ijaz A Khokhar on Monday hailed the decision of government to withdraw Sales tax and custom duty on cotton import to meet the shortfall of silver fiber in the country as well as to facilitate the textile industry. Talking to the media he said that the apparel sector at the apex of textile value chain starting from cotton and synthetic fiber. It is the least energy and capital intensive industry that playing a pivotal role in foreign exchange earnings and generating a large number of employment in the whole textile chain and exporting more than US 5 billion dollars textile products he said.

Ijaz further added that the Apparel Industry is an important engine for growth of the economy adding that sharp increase in cotton yarn prices by 20 percent had hit the export-oriented value added textile sector adversely. The skyrocketing prices of cotton yarn would have a serious affects on value added exports and this increase of yarn prices will ruin the government efforts to achieve export target, he said. The Chief Coordinator further stated with a view to bridge the gap of trade deficit the government should provide a level playing field to whole textile chain adding the apparel industry is already suffering with lower productivity. The provision of competitively priced quality cotton yarn to value-added textile industry is the basic foundation on which export competitiveness is built and apparel sector had a tough competition with the regional competitors, he added.

PRGMEA under the circumstances appealed to the government to abolish all duties on cotton yarn import for and that should be imported freely from anywhere to encourage value addition, reduce cost doing business and bridging the gap between production and consumption. The Economic Coordination Committee (ECC) of the cabinet should also give approval of duty relaxation on cotton yarn import in line with the benefits being provided to the spinners, he added.

Copyright Business Recorder, 2018


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