Govt refusal to devalue currency to spur exports lauded Ban on Indian yarn to destroy Pakistani value added industry

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(14th October 2015)

Pakistan Businessmen and Intellectuals Forum (PBIF), All Karachi Industrial Alliance (AKIA) on Wednesday lauded the government for refusing to devalue currency to boost exports of textiles.

Government preferred interests of masses over interests of textile sector as the textile millers had demanded devaluation of currency, 25 percent duty on imports of yarn from India, reduction in gas tariff, payment of refunds, three percent export rebate and abolishing GIDC.

On the other hand, government has offered electricity at Rs. 9 per unit if the textile sector shuts primitive captive power plants wasting precious gas.

PBIF President and former provincial minister Mian Zahid Hussain said that APTMA is representing spinning sector and some composite units’ therefore value-added sector responsible for 45 percent exports and 18 million jobs should also be included in the negotiations for textile package.

He said that 25 percent duty on India yarn amounts to banning its exports which will destroy value-added industry, rather export of year and raw cotton should be controlled to help value-added sector get input on reasonable price.

Spinners add 56 percent value to raw material while value-added sector add 850 percent value to it. Yarn is exported at the rate of 60 cents per pound while garments are exported at 6 dollars per pound.

Mian Zahid Hussain said that spinning sector needs over a million rupees investment to create one job while value-added sector creates almost a dozen jobs in the same amount.

He said that textile sector is plagued with non-professional management and addicted to subsidies, rebate and linking personal interests to the national interests.

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