 FAISALABAD: Value Added Textile Sector has welcomed the federal Cabinet Committee's decision to cap export of cotton yarn and termed it a right decision towards a right direction and partial solution of the prevailing crisis. Speaking at a joint press conference at Pakistan Textile Exporters Association headquarters here on Saturday, Khurrum Mukhtar chairman, Sohail Pasha Vice chairman PTEA, Rana Mushtaq Khan central chairman Pakistan Hosiery Manufacturers Association (PHMA) and Rana Ikhlaq Ahmed chairman Pakistan Cotton Power Looms Association said that for the first time in the history of Pakistan, requirements of VATS have been officially recognized at the highest forum. It was said the cabinet decision will help increase the immediate availability of yarn by 20 percent. They said that average cotton yarn export during the last three years was calculated at 40.59 million kilogram per month. However, contrary to this, cabinet committee has capped its export at 50 million kilogram per month. This decision would only fulfill the requirement of the VATS partially. However, government's attitude and direction to handle this issue is appreciable, they said and particularly thanked President Asif Ali Zardari, Prime Minister Syed Yusuf Raza Gilani, Finance Minister Shaukat Tareen and Textile Minister Rana Mohammad Rafooq Saeed Khan for officially accepting the demand of VATS at highest forum. Lamenting over the jugglery of figures, they said that some vested interests have succeeded convincing cabinet committee to cap the export of cotton yarn at exaggerated limit of 50 million kilogram per month. "We have discretion to challenge these figures for its revision in according to the actual export of last three years," they added. They said that capping of cotton yarn export at 50 million kg per month would help to partially ease the situation but for its permanent solution government will have to revise this figure to actual average export of last three months. "We are waiting for the impact of this decision on local market," they said and added that VATS would be forced to revise the export limit if this decision failed to yield positive result in the local markets. Khurram Mukhtar clarified that VATS was not against spinning sector. It is backbone of the VATS and we want its steady growth subject to the availability of yarn at reasonable rates to the VATS. It was in this respect that we support demand of 2% subsidy for the spinning sector, they added. Regarding load shedding of electricity, they said that they are in contact with the concerned quarters and hopefully this issue would also be resolved within next few days. Rana Mushtaq Khan central chairman PHMA said that decision of the cabinet committee had already been notified while Trade Development Authority of Pakistan has been entrusted task to monitor the export of cotton yarn on first come first serve basis. Reiterating other demands of VATS, they demanded withdrawal of cross subsidies on gas to bring down the prices of gas for the textile sector. |
Textile exporters hail capping of cotton yarn exports
Sunday, January 10, 2010
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