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Pak importers want withdrawal of duty on spun yarn

11
Aug '20

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Pakistani textile importers recently requested the government to withdraw the 2 per cent regulatory duty on polyester spun yarn, arguing it can substantially hurt the textile industry and exporters. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) standing committee on imports chairman Khawar Noorani requested Prime Minister Imran Khan to withdraw the duty to protect the sector from disaster.

“If relief is not provided by the government to deal with the severe economic crisis in the wake of COVID-19 pandemic, we fear that the textile industry will reach the brink of collapse, and traders and industrialists will go bankrupt,” he said in a statement last week.

Noorani said the textile sector relied on imported polyester spun yarn to continue production as domestic manufacturers are unable to meet the industry’s demand. The domestic industry meets about 30-35 per cent of the total yarn demand in Pakistan while the remaining is covered by imports.

“Despite this, local yarn manufacturers have created a monopoly and they continue to take full advantage of the lack of government supervision by setting arbitrary prices for yarn,” he said. He regretted that by imposing regulatory duty on yarn import, the government had jeopardised the entire textile sector while local yarn manufacturers continued to benefit, according to Pakistani media reports.

Fibre2Fashion News Desk (DS)

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