Dr Mirza Ikhtiar Baig, Adviser on Textile to the government, has suggested that 1% duty drawback should be given to those yarn exporters who also supply in the local market. He said he had conducted various meetings with textile associations to encourage supply of cotton yarn to the value-added textile sector.

They were of the opinion that 1% drawback allowed to large export houses in the textile policy may be given to suppliers of yarn to the local value-added textile sector. This incentive will encourage them to supply locally instead of exports and will ensure supply of required yarn to the value- added sector.

In the budget, Rs. 2 billion have been allocated under the scheme of large export houses for the current year and can be utilised for the said incentives to local suppliers of yarn to the value-added sector. Bangladesh has given similar incentive (GSP) on local supply of raw material to its garments industry.