PHMA asks govt to abolish duties on cotton yarn import to boost value-added textile export


LAHORE: The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has
demanded the government to abolish customs and regulatory duties on import of
cotton yarn, as the apparel and home textile sectors in country’s local market is
facing shortage of basic raw material, which may lead to a drastic decline in overall
textile exports.
PHMA zonal chairman Faisal Mehboob Sheikh and chief coordinator Adil Butt, in a
joint statement issued here today, observed that a huge export orders are available
with the value-added knitwear industry but the exporters are unable to take orders
due to unavailability of cotton yarn in the country on competitive prices.
Faisal Mehboob Sheikh asked the government to remove restriction from duty-free
import of cotton yarn from all neighbouring countries to enable the exporters to
compete the international market.
He said that our value-added knitwear sector is reeling under immense pressure of
high costs of doing business, rising utility rates and several other problems.
Faisal Mehboob Sheikh said that huge number of weaving industries has already
closed down and this spiralling prices and unavailability of cotton yarn will crucify
exports of value-added textile, which will lead to further closures of large number of
export-oriented units.
He stressed the need for amending rules, simplifying tax laws and automating the
business processes to bring transparency in the system, so that the SME sector of the
value-added knitwear industry could be facilitated and exports could be enhanced.
He called for implementing the vision of PM Imran Khan to simplify the export
schemes, providing new incentives for the business community to help export
industry keep abreast of latest developments and trends in the technology.
PHMA chief coordinator Adil Butt pointed out the severe cash flow crunch that has
squeezed productivity resulting in reduced exports as billions of rupees are blocked
and demanded of the government to release all stuck-up claims of exporters
Adil Butt said that almost half of the exporters find it hard to comply with trade-
related regulations or procedures in the country and abroad. He stated that better
integration with the global value chain and increased exports are important for
Pakistan’s economic development through job creation, especially for youth and

PHMA chief coordinator stated that billions of untapped export potential is at risk,
due to market frictions such as lack of transparency and related non-tariff measures,
especially for small businesses. He said that trade regulations and processes must be
streamlined to facilitate exports. A policy rethink is needed on advance payment
restrictions on raw material imports and processes involving the duty drawback
scheme. Supporting small businesses to achieve export success also requires a clear
understanding of the challenges they face.
The PHMA leadership also welcomed the cut in power tariff for small and medium
enterprises (SMEs) and omitting peak-hour charges to encourage manufacturing. He
observed that the Industrial Energy Package announced by the PM would boost
productivity, lower costs and generate employment. It will be an added impetus to
our industrial sector that is driving the economic revival and posting robust growth.
He appealed for further ease-of-doing-business, cut in cost of production, solution to
liquidity crunch through early refunds payment, long term and consistent energy
tariff policy and relaxed import policy for industrial raw materials, so that
industrialization could be boosted and exports could be enhanced.


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