Pakistan Hosiery Manufacturers and Exporters Association (PHMA) is opposing the government’s move to impose import duty on yarn. The move aimed at protecting the spinning sector, but the association believes this would have a negative impact on value-added textile sector.

Usman Jawaad, Chairman, North Zone, Pakistan Hosiery Manufacturers and Exporters Association (PHMA) strongly opposed the move and said that PHMA stands with Pakistan Readymade Garments Manufacturers (PRGMEA) and Exporters Association, Pakistan Apparel Forum (PAF) and all other business associations, who had already expressed their displeasure about the proposed move.

He said that value-added textiles in general and the apparel sector in particular were under severe pressure due to fierce competition in the international market from countries like Bangladesh, Vietnam and Cambodia. He further added that squeezing the apparel manufacturers would in turn lead to a decline in export earnings along with unemployment.

Apparel manufacturer say the All Pakistan Textile Mills Association’s (APTMA) demand to impose five per cent duty on yarn import exposed their support of a free market. The value-added textile sector, in 2010, was faced with cotton yarn shortage due to short cotton crop. However, the spinners’ lobby opposed restrictions on yarn exports. The APTMA also opposed the Indian government’s move when it imposed restriction on cotton exports to Pakistan. Now, the very people were advocating a ban on import of yarn.

Jawaad added that as the apparel industry adds more value to Pakistan’s cotton than any other segment of the textile industry, it deserves to be safeguarded of its business environment. The PHMA thus demanded that any unilateral policy be avoided and overall national interest should be foremost and the main objective while drafting the country’s policies.