India has emerged as one of the largest exporter of cotton not only to China but also countries like Bangladesh, Pakistan, Turkey and Vietnam. With rise in cotton yarn exports to Pakistan, All Pakistan Textile Mills Association (APTMA) has appealed to the government to impose 5 per cent import duty on cotton yarn since heavy imports are negatively affecting the domestic industry.

APTMA has accused that after Pakistan received the Generalised System of Preferences (GSP) Plus status from the EU, even India started heavily subsidising its textile sector, which in turn is making the local yarn uncompetitive in the Pakistani market. The import of yarn in Pakistan, according to the industry body, has been affecting the local industry in last few months. However, the value-added textile sector, on the other hand has opposed the proposal of imposing a 5 per cent duty on yarn import. 

Producers of finished textile goods in the country are against any import duty on yarn as it may end up increasing their cost of production. They say an increase in the price of the local product would adversely impact the expected rise in Pakistan’s export to the EU post the GSP Plus status.

During the first six months (July to December) of fiscal year 2014, total textile exports of Pakistan stood at 6.9 billion dollars against 6.4 billion dollars in the first six months of FY13, showing a growth of 8 per cent. Pakistan exported textile products worth 13.1 billion dollars in FY13, which was 53 per cent of Pakistan’s total exports. The exports were higher than FY12 (12.35 billion dollars) but were still below the figure of FY11 when the country registered record high textile exports of 13.78 billion dollars due to high cotton prices in the world market.

www.aptma.org.pk