The Ministry Of Textile And Textile Industry Will Extend The Export Tax On Cotton Yarn By 15% For 2 Months.

According to the Pakistan business records July 4th, the Pakistan Ministry of textile industry intends to extend the 15% adjustment tax on cotton yarn exports to 2 months to September 27th, which is due to expire in July 26, 2010.

The Pakistani textile industry is deeply disturbed by this, saying that the extension of the policy may make the spinning industry on the road of no return.

The textile industry believes that due to the snowstorm this year, China's cotton production will continue to be high. The price of the world's cotton and cotton yarn will remain high in the first quarter. It is suggested that policymakers and textile related departments and people should formulate a joint strategy as soon as possible to avoid the continuous crisis.

Analysts believe that the most effective way is to give financial support to the high value-added textile sector to offset the impact of domestic and foreign high cotton yarn prices.

Supplement:

The crisis surrounding yarn has not yet been resolved, although the Ministry of textiles has taken several policy measures to ensure yarn prices at reduced prices.

At present, the added value textile department has complained that the shortage of yarn has led to an increase in yarn prices. The owners of the spinning industry condemned the government for adopting a fraud policy in opening up the market economy and rejecting the export opportunities of the spinning mills, and the government imposed restrictions and tariffs on export yarns.

In the value-added textile department meeting with Prime Minister Gilani and textile minister, the president of the spinning industry association Rana Faruqi put forward these requirements, asking the government to continue to levy tariffs on yarn.

In addition, the value-added textile sector asked the government to freeze the debt of 300 billion rupees of the Department for three years and adopt a rescue policy, similar to that of the industry at the end of 90s.

However, some associations met with the Minister of Finance and were assured that temporary restrictions and tariffs on yarn export requisition will be concluded and no longer extended from July 26th.

At present, the price of yarn in the international market is 127 rupees / pounds, while the price in the domestic market of Pakistan is 115 rupees / pounds.