The value-added textile sector in Pakistan has demanded additional duty drawback to compensate the multiple domestic and international negative happenings that have adversely affected dwindling export. As Khurram Tariq, Central Chairman Pakistan Hosiery Manufacturers & Exporters Association (PHMA) points out the value-added textile sector is under severe stress particularly due to the unprecedented reduction in cotton production, increase in prices and sudden depreciation of euro and the pound in the wake of Brexit.

He said that due to 34 per cent sharp decline in cotton production this year, prices have also recorded an upward trend in local as well as in international market. And despite the gravity of situation, the government has not taken any remedial steps to compensate the value added textile sector. Increase in cotton prices was the natural outcome of low cotton yield and it has further enhanced the cost of doing business which was already a major problem for exporters in competing with rivals.

Tariq suggested that government immediately withdraw the 15 per cent regulatory duty on import of yarn and duties on cotton to ensure free availability of raw material to the value-added export sector that would enable it to compete with regional competitors and maintain its position in the international market. Similarly, in view of acute shortage of cotton in the domestic market the government should immediately impose complete ban on export of cotton and yarn to ensure availability of raw material in abundance to the value-added textile sector.