FAISALABAD: Textile exporters are facing severe problems in meeting export demands. There is a drop in yarn production but textile industry’s demands have increased.
The gap between supply and demand has put a pressure on textile exporters who are already facing severe financial crisis for non-payment of Rs330 billion in income tax refund and duty drawback taxes.
This was stated by Pakistan Textile Exporters Association patron-in-chief Khurram Mukhtar in statement issued here on Thursday. He said yarn had a 60 per cent drop in its production this year while there was a 25 per cent increase in the textile industry demand. This gap has led to a shortage of cotton yarn in the market and resulted in immense increase in the thread price.
He welcomed the government decision of importing yarn from the Central Asian States via Torkham but said it would cost more as compared to India. He urged the government to make arrangements for income tax refunds to save textile exporters.