APTMA has rebutted claims of non-availability of cotton yarn. The association said, Pakistan produces 200,000 tons of cotton yarn monthly with consumption of 1.3 million bales per month. Out of this, only 6 million bales were produced domestically, and balance had to be imported at international prices from the US Brazil and West Africa this year and 200,000 tonne of yarn production has been kept constant.

The spinning industry consumes 100 per cent of 30,000 tonne of synthetic fibers produced in the country, 200,000 yarn is produced from cotton and synthetic fibers monthly out of which only 100,000 tonne of yarn is consumed by value added per month balance is exported in form of 60,000 tonne of Fabric and 40,000 tonne of yarn every month. Hence, there is no question of shortage of yarn or fabric in the country.

APTMA also refuted claims of its yarn rates being above international rates. It said, the export sector already has the facility to import yarn for re-export of products free of duty from anywhere in the world except India. Export Refinance is available to value-added sector at a mere 3 per cent and should have been spent on purchasing yarn and cloth, the sector would not be reaching out to government for additional support.

Currently, cotton is at 80 cents and exchange rate is 152. The combined effect is that cotton imports are 22 per cent more expensive but the yarn manufacturers had to adjust pricing in line with the lower cotton price and exchange rate, taking a hit of approx. 10 per cent on the realized value of yarn. The rupee appreciated against the dollar by 8 per cent and thereby squeezed the textile sector by reducing the amount of rupees they would have been received