Any move by the Federal Board of Revenue (FBR) for imposition of regulatory duty on import of cotton yarn without taking all stakeholders of the textile chain on board will be strongly opposed by the Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA). It came as a surprise for the sector that the FBR took some decisions to facilitate the textile sector in the country, in a meeting with All Pakistan Textile Mills Association (APTMA), Pakistan Textile Exporters Association (PTEA), and the Garments Manufacturers Association, said PRGMEA Chairman, Ijaz A Khokhar. However, the key stakeholder of the sector, the PRGMEA was not invited to the meeting.

Khokhar stated that garments value-added sector under the PRGMEA strongly opposed any barrier on import of fabric for garments export and also any regulatory duty imposed on yarn import. While formulating national policies regarding the textile chain, the value-added garment sector should be taken in confidence as well.

The present rate of 5 per cent custom duty on import of cotton yarn is adversely affecting the domestic spinning industry. Thus, appropriate measures in this regard, which includes imposition of regulatory duty on import of cotton yarn, need to be adopted. The FBR stated in a meeting that that an inter-ministerial committee that included representatives of the Federal Board of Revenue, the Ministry of Textile Industry and the Ministry of Commerce was constituted to give recommendations with regard to imposition of regulatory duty on import of cotton yarn.

However, the garment sector was completely ignored and not taken on board for any consultation, felt Khokhar. Incidentally, this is the only segment of textiles that showed a rise of more than 10 per cent in Pakistan's exports of 2014-2015, out of the total textile sector.