The cross-border yarn import has been approved by Prime Minister Imran Khan amid fears of a shortage of industrial input in textile exports.
PM Imran Khan Okayed cross-border yarn import. In this regard, Razak Dawood, Commerce Adviser took to Twitter and said that Prime Minister Imran Khan was concerned about the shortage of and escalation of cotton yarn prices in Pakistan. He expressed his concern in a meeting and he instructed to take the necessary measures.
The Adviser posted, “A meeting was held with the Prime Minister @ImranKhanPTI today. He showed his concern on shortage & escalating cotton yarn prices and instructed to take necessary measures, including cross border trade of cotton yarn, to keep the momentum of value-added exports.”
Moreover, the media reported that the government was of the view to import cotton from India to meet the demand. In the 7 months of the current fiscal year, more than 8 percent to $8.8 billion Textile and clothing exports increased.
Permission was sought by the Pakistan Yarn Merchants Association to immediately permit the duty-free import of yarn and cotton from India in order to save the textile industry from collapsing. If export orders are not fulfilled in time, the business will be adversely affected, the association said.
According to the association’s office-bearers, orders from India, China, and Bangladesh were transferred to Pakistani exporters that helped to increase production activities.
These days, however, the cost has risen sharply due to the non-availability of raw materials as per the demand of the textile industry and the high price of yarn.
Non-availability of raw materials
However, the association, in a statement, said: “If we do not manage to import raw materials from other countries, including India, then export orders that have been transferred to Pakistan will not be fulfilled.”
“This will tarnish Pakistan’s image in the world and we will not get new orders.”