The Pakistan Yarn Merchants Association has demanded imposition of 15% regulatory duty on imports of cotton yarn from India.
PYMA Zonel Chairman Muhammad Akram Pasha and Zonal Vice Chairman Adnan Zahid Butt talking to newsmen on Saturday stated that during the six months of year 2014 July to December total quantity of yarn imported from India was rupees 15.8 billions while in the same period of preceding year the total import was rupees 4.2 billions. Thus within six months the import of Indian yarn quadrupled impacting negatively on the local market.
They said India was trying to sabotage the Pakistani Yarn Market and spinning sector by dumping heavily subsidised yarn exports from that country. They explained that the Indian government was giving various incentives and subsidies to its exporters enabling them to dump their cotton yarn in Pakistani markets. The imports of cotton yarn from India were thus destroying the textile sectors of Pakistan.
Substantiating their arguments, they said the textile was back bone of the Pakistani Economy which was earning more than 50% of total foreign exchange for the country. Furthermore, huge number of textile industries and value-added chain were connected with the spinning sectors and yarn market. Therefore if the imported Indian cotton yarn is allowed to enter in Pakistani market then not only the textile sectors but also the value-added chain of industry would be completely destroyed and millions of workers and allied supply chain would be rendered jobless.
They said the government was imposing regulatory and anti-duping duties on imports of chemicals, and other items from various countries. Similarly regulatory duty at the rat of 15% should be imposed on import of cotton yarn from India. This would not only protect the local market, the yarn business, the value-added industry chain, and allied business suppliers but would also enable the Pakistani exporters to earn much-needed foreign exchange for the country.
They drew the attention of the government that this demand was being raised by various business and industry circles over the last many months but the government had not so far taken any concrete action in this matter. They said the government should take cognizance of the matter and immediately imposed 15% regulatory duty on import of cotton yarn from India to save the business industry and export of the country.
