PHMA demands additional duty drawback.
Dr. Khurram Tariq, Central Chairman Pakistan Hosiery Manufacturers and Exporters Association (PHMA) said that the value added textile sector has demanded the facility of additional duty drawback to compensate the multiple domestic and international negative happenings that have adversely affected our already dwindling export.
He said that value added textile sector was under severe stress particularly due to the unprecedented reduction in cotton production, increase in its prices and sudden depreciation of Euro and Pound in the wake of Brexit.
He further said that due to 34% sharp decline in cotton production this year, its prices have also recorded an upward trend in local as well as in the international market. Despite the gravity of the situation, the government has not yet taken any remedial steps to compensate the value added textile sector. The increase in cotton prices was the natural outcome of the low cotton yield; the cost of doing business which was already a major problem for the exporters in competing with their rivals.
He suggested that government immediately withdraw 15% Regulatory Duty on the import of yarn and duties on cotton to ensure free availability of raw material to the value added export sector enabling it to compete with regional competitors and maintain its position in the international market. Similarly, in view of acute shortage of cotton in the domestic market, the Government should immediately impose a complete ban on export of cotton and yarn to ensure availability of raw material in abundance to the value added textile sector.
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|Title Annotation:||Pakistan Hosiery Manufacturers and Exporters Association|
|Publication:||Pakistan Textile Journal|
|Article Type:||Brief article|
|Date:||Sep 30, 2016|
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