Faisal Moiz Khan, President North Karachi Association of Trade & Industry (NKATI), Sadiq Mohammad, Chairman UFG, have appealed to Prime Minister Imran Khan to immediate ban on export of cotton yarn for continuing industrial production and save value added sector from destruction, also abolish 5pc customs duty on import of cotton yarn forthwith so that industries can get raw materials at reasonable prices.
In an appeal to Prime Minister Imran Khan, they expressed deep concern over the shortage of cotton yarn in the local markets and the sharp rise in prices, which is the basic raw material of textile and other industries. They said that cotton yarn is the main raw material of textile, towel, bed sheet, knitting garments and other industries. We are already facing shortage of crop and mills preferring on yarn export not interested in local market.
“Due to export of large quantities of cotton yarn by the mills is increasing prices in the local market, which has led to a huge increase in the production cost of industries”, they added. At a time when Pakistani exporters have a large number of foreign orders, the unavailability of cotton yarn and the high prices have jeopardized the timely execution of export orders, which in the presence of the corona could destabilize the country’s economy
They cited the latest SBP data that RF drawn by exporters to buy yarns etc. is approx. Rs 407 billion (equals to approx. 20million plus Yarn bags). This quantity equals to one-year production of an average production of 600bags per day spinning mill of 95-100 spinning mills. RF money if not used for yarns storages etc. than it’s must need to be audited by SBP for its misuse. Therefore, when there is a shortage of something in the country, it should not be refinanced at all, as RF subsidized rates are direct load on tax payer’s money.
Faisal Moiz Khan and Sadiq Mohammad appealed to the Prime Minister Imran Khan to take steps in the best industrial and economic interest of the country and seriously consider the demand of the industrialist community by banning the export of cotton yarn and to abolish 5pc customs duty on import. So that the production activities of the industries can be continued uninterruptedly and timely completion of export orders can be made possible.
