Value-added textile sector fears shortage of cotton, yarn

KARACHI (APP) - Value Added Textile sector, major contributor to the countrys exports and single largest jobs provider, has reiterated its demand of total ban on export of cotton or yarn to save this very important segment of the national economy. Muhammad Jawed Bilwani, Coordinator of Value Added Textile Forum having representation from all value adding textile associations of the country, on Friday apprehended that the value added textile industry would be facing serious problems unless export of these vital textile raw materials is completely banned. Besides huge loss of foreign exchange to the country and big increase in the pertaining un-employment, it would take us much time to re-organize this sector. Bangladesh, which has strong value adding textile sector, now-a-days faces serious crisis for non-availability of cotton and yarn. This country grows not single bale of cotton but earns around dollars 15 billion per annum by export of textile products after value addition, he pointed out. He said India has already imposed total ban on export of cotton and yarn to save her domestic value-added textile industry. India was the main source of cotton supply to Bangladesh who is now looking for sources of cotton. This might encourage our cotton or yarn producers to export their stock for high profit which would prove a great blow to our entire chain of value added textile sector, he maintained. Like Bangladesh, we would be crying for cotton/yarn if the leakage is not immediately stopped, Mr Bilwani remarked. The leading textile industrialist and exporter argued that WTO does not restrict Pakistan from banning export of cotton and yarn. India, he continued, is also a signatory to WTO but has gone for complete ban on export of these two commodities in its national interest. M. Jawed Bilwani said value added textile associations have shown strong reservations over the Government decision of levying 15 percent duty on export of cotton and yarn, and demanded at least 30 percent duty to discourage export of the textile raw materials. If the Government is hesitant to impose ban, there should be not less than 30 pc duty on cotton and yarn export, he asserted. For next couple of days, value added textile sector operators would observe the impact of 15 pc export duty on domestic cotton/yarn market. If not satisfied with availability of this stock, we would re-start our country-wide campaign against export of cotton or yarn. He maintained that it would be in the best interest of the country to make exports only through value added sector.

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