Pakistan's spinning and weaving sectors should work on their efficiency instead of asking the government for duty on imported yarn so that they can sell their expensive yarn in the local market, advice experts. Increased cost of doing business for spinners is an issue between them and the government, says Shahzad Azam Khan, former Chairman Pakistan Hosiery and Manufacturers Association. He urged them to pressurise the government to lower power rates and make remove duties on exports.

Khan argues Pakistani yarn is more expensive than imported yarn and, to stay competitive in the global market the value-added sector is forced to import yarn. Thus, the cost of apparel producers would rise if the government imposes more duty on yarn import and they would not be able to export. Khan added that the argument that the duty is refunded to exporters is invalid as all sorts of export refunds remain stuck with the FBR for years.

He further mentioned that when all other textile sectors experienced a decline in exports, only the apparel sector showed growth in recent months. Added duties on their inputs would make apparel manufacturers uncompetitive. This would make them suffer the same fate as that of spinners and weavers, said Khan.

Ejaz Khokar, Chairman Pakistan Readymade Garments Manufacturers and Exporters Association points out that the local apparel manufacturers always prefer to buy local inputs including yarn and fabric. However, domestically and globally, these two sectors have become uncompetitive.