Jan 11 - 17, 20

Government intervention in the name of value addition into the free market mechanism, which is in practice for many decades, would harm the textile industry the leading export earner for the national economy.

It is the yarn which provides the basis for value addition exports worth over $9 billion per annum, otherwise the exports of entire cotton crop from the country would not fetch more than $1.6 billion

Anwar Tata and Shahazad Ahmed, Chairman and Vice Chairman All Pakistan Textile Mills while discussing the issue said spinning industry had suffered huge losses due to its defaults on bank loans worth over Rs142 billion, in the wake of worldwide economic recession as well as high cost of financial and unbearable hike in gas, petroleum and electricity prices.

No incentives are offered to this backbone segment of the textile sector. Now when the industry is getting revenue from yarn exports there is a move to contain exports of yarn on the ground that exports are hurting value addition.

'The weaving sector does not have the capacity to consume the entire yarn produced in the country as there is always surplus available for home consumption.'

The yarn industry has to import three million bales of cotton to produce yarn and export it from Pakistan, they said adding, yet this industry has been denied of any relief in export refinance scheme and has to borrow on market rates at 16 percent as compared to 5 percent available for fabrics and garment exporters.

Consequently the yarn industry has to suffer bank defaults of Rs142 billion only because of this high cost of financing and exorbitant rise in gas and electricity prices. They pleaded to the government that instead of intervening into the textile affairs it should allow the market forces to determine the price factor, which is the normal practice elsewhere in the world.

Out of the textile package of Rs42 billion around Rs22 billion were disbursed in the other segments of textile industry while to the yarn industry there was even no R&D allowed. Even then, we agree to this policy and have no grievance but as far as the trade is concerned barring yarn industry from free export is unwise and non-professional approach just to harm the spinal cord of the whole textile industry, they said.

While giving details of export surplus available in the local market they said that production of cotton yarn in the month of November 2009 was 241.2 million kgs of which 59.5 million kgs were exported and the remaining 182.45 million was available for local consumption, 8 percent more than the previous month.

Actually, yarn is available in sufficient quantity, and it is only the matter of price as some individuals of downstream industry are speculating wrongly by selling at cheaper pries and now they want the spinners to pay for their mistakes, they revealed.

They pointed out that the price per pound of 20 single counts in India is Rs120 as compared to Rs95 for the same in Pakistan indicating that yarn is still the cheapest in the world in Pakistan.

On the other hand, to facilitate the yarn consumers the government has also withdrawn 5 percent import duty on yarn import while the local yarn producers have no objection of this free import of yarn even then some vested interests are making hue and cry to destroy the wheel of industry, they remarked.

Some APTMA members of downstream industry were importing yarn from India. They are against imposition of embargo on import of yarn. They are also against any restrictions on yarn exports as the prices of their products have already increased in Europe, US, and other countries, and if free market mechanism is disrupted their prices will decrease and the whole country will suffer.


While the value added textile industry including fabric, apparel, and home textiles are raising voices against the shortage of cotton yarn and demanding restriction on export of cotton yarn, the yarn producers say that the hue and cry for cotton yarn is eerie when the government has allowed duty free import of cotton yarn in the country.

However, the representatives of value added industry have said that it is indeed greatly disturbing that the business of the textile processing industries catering to the needs of the value added fabric, apparel, and home textile sector has been seriously endangered with loss of almost 70% of business just because of the acute shortage of cotton yarn.

Anees Motiwala, chairman all Pakistan textile processing mills association said that it was indeed alarming that large numbers of the value added fabric, apparel and home textile Sector units were closing down and many more were on the verge of closure due to severe shortage of cotton yarn.

Textile processing industries are an important component of the value added textile chain employing large number of workers who will be rendered jobless if the government does not come to the aid of the entire value added textile sector and take immediate steps to ban export of cotton yarn up to 32 single used in value addition, he said.

In view of the horrendous scenario emanating from the closures of most the value added fabric, apparel and home textile units and the looming threat of flight of capital from the country, we most fervently appeal to the government to take immediate steps and ban the export of cotton yarn to save the value added industry from total collapse and save the jobs of millions of workers.



Trade Development Authority of Pakistan is organizing a Single Country Exhibition in Tripoli, Libya from 10-13 January, 2010. As many as 65- prominent companies from various sectors in Pakistan along with four others from Pakistani business community in Libya are participating and displaying their goods at the exhibition.

This is a mega event which is taking place at the directive of the president of Pakistan, who visited Libya in April/May last year, followed by a visit from our prime minister in August, 2009.

This is a second such event in Libya and similar exhibition was organized by the TDAP in early 2007. Trade Development Authority of Pakistan organizes various events throughout the world as part of its continuing efforts to encourage and support our business community to explore new markets, besides the traditional markets.

Pakistan and Libya have always enjoyed close and cordial relations. The recent visits of president and the prime minister to Libya have further provided several new opportunities for both countries to strengthen their relations in all fields.

The exhibition will be inaugurated in January 10, 2010 at Tripoli International Centre. The exhibition is meant not only to cater to the Libyan market, but also to open a window into the Sub-Sahara markets of Africa.

A facilitation desk has been established in the exhibition hall to assist exhibitors as well as visitors where TDAP will be displaying brochures, CDs and product materials on Pakistan.

A multimedia centre has been established where documentaries on Pakistan will be shown along with special documentary on Pakistani handicrafts.

A mini pictorial exhibition has been arranged with in the exhibition hall where historical pictures of the high level visits of both the countries will be displayed.

The establishment of Display Centre by Pakistani business community in Libya will also be announced during the exhibition.

A "Business Opportunity Awareness" seminar is being arranged on January 11, 2010, where matchmaking of exhibitors will be arranged with their Libyan counterparts. This seminar will be followed by the visit of Libyan businessmen to the stalls of participants to further discuss the business and investment opportunities.

Delegations from Tripoli Chamber and Libyan Businessmen Council have also been invited to visit stalls during the event. Besides this, separate interviews of the exhibitors will be published/broadcasts in the local media.

The arrangements of the exhibition and the program have been prepared by TDAP in consultation with Pakistan's embassy in Tripoli. A wide publicity campaign has been arranged on print and electronic media to make this event a great success.