Pakistan witnessed another dismal year registering 8 per cent decline in textile exports in the past year, whereas exports of non-cotton producing countries Bangladesh and Vietnam surged significantly. Excluding ready-made garments, exports of all other textile segments went down drastically in Fiscal Year 2015-16 (FY16) including raw cotton, cotton yarn, cotton cloth, and the like.

Stakeholders termed the federal government totally responsible for this worrying situation, saying that poor policies of the incumbent government had brought Pakistan’s most valuable sector on the verge of collapse. Increased sales tax led to piling up of exporters’ refunds with the tax department. Further, due to imposition of 10 per cent regulatory duty on yarn imports from India, the cost of doing business, and consequentially the price of domestically produced yarn increased manifold, they added.

Meanwhile, All Pakistan Apparel Forum (APAF) has written a letter to the Prime Minister of Pakistan appealing to revive the exemption of regulatory duty on import of cotton yarn. APAF is a joint forum of Pakistan Hosiery Manufacturers & Exporters Association, Pakistan Knitwear and Sweater Exporters Association, Pakistan Cotton Fashion Apparels Manufacturers & Exporters Association and Pakistan Readymade Garments Manufacturers & Exporters Association.

Incidentally, Pakistan is the world’s fourth largest cotton producing country.