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Pakistan has introduced
90 non-traditional items in world markets and explored
80 new countries for Pakistani products to increase the
volume of exports and strengthening the country's economy.
Tariq Ikram, Minister of State and Chairman of Export
Promotion Bureau disclosed this while addressing the Executive
Committee of MCCI and All Pakistan BedsheetS and Upholstry
Manufacturers Association (APBUMA).
He said that Pakistani exports have increased by 14%
from preceding year and we would easily meet the export
target of US $12 billion, at the same time reducing the
inflation by 3% to 4%. The Minister said that there was
no duty on import of cotton; however, duty on polyester
exists.
Despite of SARS, Iraq war and September 11 tragedy, Pakistan
had achieved the target of $ 11.2 billion in 2003 and
$9 billion in 2002. He disclosed that a fresh trade policy
would be framed with the consent of stakeholders like
a exporters, manufacturers, and importers etc. and it
would be announced soon.
With the rationalisation of tariff, cost of production
has reduced and our exporter is capable to compete with
the other exporting countries. He further said that ending
of quota would not hit our exports because we rely only
37% on quota. Of these we produce more than 15% monopoly
products and our social compliance is far better than
Bangladesh, Sri-Lanka, and other countries.
The government is likely
to impose duty on export of cotton yarn. The textile ancillary
industry has been demanding of the government to impose
duty on export of cotton yarn as it is crippling their
exports. The industry has been arguing that on the one
hand their competitors are getting cheap raw material
(cotton yarn) from Pakistan, but on the other the domestic
industry is being deprived of this much-needed raw material.
The Pakistan Hosiery Manufacturers Association (PHMA)
has specifically put this case before the Export Promotion
Bureau (EPB), suggesting restricting exports of cotton
yarn by imposing export duty. The Association pointed
out that there was an urgent need to improve domestic
supply of cotton yarn for value-added sectors like knitwear,
hosiery, towels and bedwear.
The textile ancillary industry says that unbridled export
of cotton yarn is badly affecting domestic supplies. The
industry argues that due to low supply position cotton
yarn prices have touched an unprecedented level, thereby
affecting their export competitiveness in world market.
The value-added textile sector has been claiming that
a check on yarn exports will also help attract foreign
investment in the textile sector.
Following
decline in cotton crop in the country owing to rains;
the textile sector of Pakistan has imported 500,000 bales
of cotton from India. Textile entrepreneurs have opened
LCs for the import of 700,000 bales of cotton from India.
Pakistan imported 1.3 million bales to meet the gap between
production and consumption last year.
The estimated yield is around 10 million bales of cotton
this year while the required number ranges between 12
to 12.5 million bales. Pakistan would have to import 2.7
to 2.8 million bales of cotton to fulfill the requirements
of cotton industry. In order to meet industry's demands,
Pakistan is also purchasing cotton from Egypt, Central
Asia and US. It is also worth noting that the Pakistani
textile industry's income stood at Rs 3 billion as compared
to the corresponding last year's total income of Rs 2.7
billion, an increase of 11.1% year on year basis.
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