KARACHI: Yarn merchants have appealed Prime Minister Imran Khan to withdraw the decision of imposition of 2 percent regulatory duty on polyester spun yarn, a statement said on Wednesday.
Khawar Noorani, chairman of the standing committee on imports, convener yarn trade committee, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and former chairman Pakistan Yarn Merchants Association (PYMA), urged the prime minister to save the textile industry from disaster.
He feared in the absence of relief, the textile industry, which was facing serious economic crisis due to COVID-19 pandemic, would collapse and traders and industrialists would go bankrupt.
Noorani, in an appeal to the prime minister, said that the textile industries have to rely on imported polyester spun yarn (5509-2100, 5509-5100) to continue production activities, as local manufacturers are unable to fulfil the demand of industries and even today, local industry makes around 30 percent to 35 percent of the yarn’s demand, while 65 percent to 70 percent of the goods were imported.
Despite this, the local yarn manufacturers have established a monopoly and are taking full advantage of the lack of the government supervision by setting arbitrary yarn prices, he added.
“The government has put the entire textile industry in jeopardy to benefit the local yarn manufacturers, as the local manufacturers are taking full advantage of the imposition of taxes on imported raw materials,” he said.