Pakistan &Nbsp; APTMA&Nbsp; Does Not Support Extension Of Export Tax On Cotton Yarn.

APTMA will Changsha Beh Chad Ahmed (Shahzad Ahmed) urge the Ministry of textiles to clarify that the regulatory tax will be abolished in July 26, 2010 and will resume the opening of the free trade mechanism according to the Ministry of textile industry's commitment.

Rumor has it that APTMA agreed to extend the restrictions on cotton exports until July 26, 2010, and Ahmad denied this rumor.

In addition, Ahmad also pointed out that the spinning mill is now suffering huge losses because of its limited supply of cotton.

At present, because of a 15% tax on cotton yarn export, the owner of the spinning mill has to buy homemade cotton, which is 10-15% higher than the global price, but they sell it.

Ahmad said that due to frequent changes in policies, the chances of doing business in the uncertain environment are almost zero, so the credibility of Pakistan is gradually declining.

With the upgrading of the yarn crisis in Pakistan, the spinning mills and the value-added textile industry have decided to give up their differences and solve problems through dialogue, aiming at providing the government with a strategy to jointly revitalize the textile industry.

Informed sources said on Thursday that Prime Minister Yusuf Raza Gillani (Yousuf Raza Gilani) personally intervened and asked the textile minister Rana Mohamed Farooq (Rana Mohammed Farooq) to convene the two sides to end the 9 month old yarn crisis because it has seriously affected Pakistan's textile exports.

The leaders of the Pakistan Textile Mills Association (APTMA) predict that textile exports could reach US $16 billion this year if we prudently implement the textile policy.

The two sides agreed to set up a committee of 16 people, 8 of them from the value-added sector and the Pakistan Textile Mills Association (APTMA). The committee will convene in recent days to resolve the differences between the two sides.

The prime minister is under pressure from voters in cotton growing areas. He hopes to solve the yarn crisis before cotton picking is fully developed.

All stakeholders agreed that it would be impossible to reduce yarn prices to current cotton prices.