Pakistan Garment Manufacturers Offer 5% Of Export Tax On Cotton Yarn.

The textile industry in Pakistan is on the brink of collapse. The shortage of yarn supply has led to the closure of several value-added textile factories.

In order to save the endangered industries, the industry has realized that it is necessary to work out a joint strategy.

At a meeting with representatives of the spinning department last week, garment manufacturers withdrew their earlier request to raise the export duty on yarn, and now they want to reduce the export tax to 5%.

However, the representatives of the yarn Department strongly opposed the adjustment of the export duty on yarn, which they said was an unrealistic practice.

AkberSheikh, former chairman of the Pakistan Textile Mills Association (APTMA) in Punjab, said that tariff adjustments should not be applied to yarn exported to China, because the free trade agreement signed by both sides is not allowed to do so.

About 60 to 70 percent of Pakistan's yarn is exported to China.

Because yarn prices are closely related to cotton, it is difficult to control yarn prices.

On the contrary, yarn prices rose from 760 /10 in 2009 to 1260 rupees in April 2010, because the price of cotton rose from 3350 rupees to 6700 rupees /maund in 2009.

However, yarn prices are rising far below cotton prices.

After the government implemented the yarn quota, spinning enterprises had to stop importing cotton from the international market.

In addition, farmers are opposed to the implementation of yarn quotas because they are worried that their spinning enterprises will consume less.

In addition, farmers support the free market economy, because in the past, the free market economy helped them benefit from higher international prices.

They also support free import and export yarn and require free import and export of cotton.