APTMA rejects R&D on cotton yarn export



ISLAMABAD: The Pakistan Textile Mills Association (APTMA) strongly opposed the decision to impose a regulatory duty on the export of cotton yarn. According to the Association, not only would this distort the momentum gained in exports after decades, but would disrupt the continuity of government policies for export-led growth.

Abdul Rahim Nasir (president of APTMA) who has been silent on the RD Commerce Ministry’s idea on cotton yarn export, has now said that a certain group with special interests is busy doing unnecessary cries to collect R&D on cotton yarn export on false pretenses with the intention of stirring up the historic high trend of textile exports, pushing back investments by more than $ 4 billion and depriving the country of the 500,000 additional jobs projected.

In a statement, he pointed out that cotton yarn is sufficiently available in the country for consumption in the value-added sector for export, which is evident from the fact that the export of cotton yarn has declined. in recent years, as a result textiles have achieved record exports of $ 15.4 billion.

The Commerce Ministry said Pakistan exported cotton yarn worth $ 1 billion in fiscal year 2020-21.

Export of cotton yarn: the Ministry of Commerce says it is ready to support the taxation of R&D?

However, APTMA estimates that cotton yarn exports decreased by 25% in quantitative terms, from 0.522 million tonnes (FY19) to 0.390 million tonnes (FY21) and by 26% in value. Cotton yarn exports in FY21 decreased by 5% in quantitative terms while the value increased by 3% from FY20.

According to PBS data, over the past four years, cotton yarn exports have trended downward in both quantity and value. He showed that the cotton yarn produced in the country is used in the value-added sector, which is clear from the export figures. Value-added sector exports showed remarkable growth in FY21, registering 32% in towel exports, 19% in clothing, 37% in knitwear and 29% in bedwear exports. .

APTMA opposes ECC decision

Textile exports grew 23% in FY21 while registering growth of 29% in the first two months of the current fiscal year. In August 2021, textile exports registered a growth of 45% compared to the same period last year. Instead of considering any idea of ​​imposing R&D on the export of cotton yarns, it is urgent to ensure the supply of basic raw materials (cotton and MMF) at competitive prices. The national production of cotton yarn is around 3.5 million tons and local consumption is 90% for value added products while only 10% are exported.

APTMA claims to believe in a free market mechanism for textile trade along the value chain. In a scenario where cotton is short by 6 million bales and polyester by 200,000 tonnes, these raw materials must be imported for factories to operate normally and meet the target of textile exports of $ 21 billion.

Copyright Business Recorder, 2021


Previous Endeavor Viewers Criticize Cluedo Season Finale “Absolute Farce!” | Television and radio | Show biz & TV
Next Is ITV (LON: ITV) using too much debt?