Prices of cotton yarn have increased by around 25 per cent in Pakistan during the last one-and-a-half months.

The country’s garment manufacturers and exporters say this is due to cartelization by local manufacturers who are taking advantage of the 10 per cent additional regulatory duty on the import of yarn.

Garment makers want the additional regulatory duty on imports of cotton yarn to be abolished. They also want a ban on the exports of raw cotton and cotton yarn for a short period till the arrival of new crop rationalizes the rates of yarn in the local market. They say the whole value-added apparel sector has been hit hard, especially due to limited availability of cotton which is being exported without any hindrance.

Textile exports of Pakistan have a more than 54 per cent share in total exports of the country. But the apparel sector already has a very limited production line owing to the lack of the latest fabric varieties. This has resulted in a significant decline in apparel exports. The export target of 25 billion dollars could not be achieved in the last fiscal year. Enhancing textile exports can help the country reduce the trade deficit.