Govt committee proposes ban on yarn export

Post Source: The News – January 08, 2010 – By Aftab Maken

ISLAMABAD: An inter-ministerial committee on yarn is said to have recommended imposition of a ban on yarn export in an attempt to provide relief for the downstream industry of the textile sector, The News has learnt.
“Yes, current yarn export clearly supports the demand of the value added sector for a ban after thoroughly examining the pros and cons,” a federal secretary told The News.

The Cabinet Committee on Textile, in its previous meeting in December, abolished customs duty on cotton yarn import while a decision on yarn export may be made in the next meeting to be held on Friday at the Ministry of Textile.

The food and agriculture ministry and the textile ministry do not support a ban on yarn export but the commerce ministry is in favour of restrictions for providing cheap raw material for the value added sector.

Both standing committees of the upper and lower houses of parliament also recommended to the Cabinet Committee on Textile to slap a quantitative ban on yarn export when it crossed the limit of 550 million kg, Textile Minister Rana Farooq Saeed Khan told reporters after the inter-ministerial committee meeting at the Parliament House.

However, a representative of the All Pakistan Textile Mills Association, Yaseen Siddique, rejected the recommendation of the committee, saying, “it is not fair” and they would not accept the decision of the government if a ban was imposed on yarn export.

The committee also recommended that yarn export should not go beyond 550 million kg compared to average export of 525 million kg over the last three years.

The textile ministry told the committees that monthly export of yarn had exceeded the fixed quantity of 50 million kg as it was reported to be 63 million kg in December compared to around 43 million kg in the corresponding period last year.

The ministry cautioned that if a ban on yarn export was not imposed, it would definitely hurt government’s efforts to achieve $25 billion textile export target in five years.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: