LAHORE: Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has rejected the idea of imposing import duty on yarn as it would pose negative impact on the value added textile goods.
PHMA chairman Usman Jawaad was reacting to a news report that the FBR was considering such a move in the name of protecting spinning sector.
He strongly opposed this move and said that the PHMA stands with Pakistan Ready-made Garments Manufacturers and Exporters Association, Pakistan Apparel Forum and all other business associations which have already expressed their resentment on the proposed move.
Usman went on to say that Pakistan’s value added textiles in general and the apparel export sector in particular, are under severe pressure due to hard competition in the international market from the countries like Bangladesh, Vietnam and Cambodia. He added that squeezing the apparel export sector will lead to decline in export earnings coupled with unemployment in the country.
The GSP opportunity provided a breathing space for the apparel export sector which has performed well in the shape of increase in exports at a time when overall exports of country are showing a declining trend. In such a situation any policy adversely affecting apparel export industry will have direct and spontaneous negative effect on overall business activities since this is the largest employment providing sector of Pakistan, he added.
