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APCPA concerned at reckless yarn export

KHALID ABBAS SAIF

FAISALABAD: All Pakistan Cotton Powerlooms Association (APCPA) has expressed grave concern over the reckless export of yarn recording a steep decline in cloth export and affecting Pakistan's foreign exchange earning.

Addressing a press conference, here on Saturday, APCPA Chairman Rana Ikhlaq Ahmad, Khuwaja Mansoor Rahim, Vice Chairman Mohammed Akram Ghouri, Former Chairman Ch. Abdul Haq, Senior Executive Member and Rana Faqir Ahmad, Executive Member of APCPA alleged spinners of creating another crisis by exporting yarn totally ignoring its domestic consumption. "Yarn is exported imprudently in just for the refinance facility creating its shortage in the domestic market", he said and added that its hoarding has further aggravated the crisis and the yarn prices has recorded unprecedented rise of Rs 65 per bundle.

Rana Ikhlaq Ahmad said that 35 percent looms in the country has been closed down, while the shortage of yarn and price hike would push it to the verge of total collapse.

He was also critical of negative impact of the General Sales Tax and said that small unregistered units have to bear the cumulative GST of 28 percent.

Explaining it, he said that being unregistered firm, they have to pay 18 percent GST on the purchase of yarn. In addition to it, powerloom owners are also bearing burden at least 10 percent impact of GST levied on electricity, Sui gas and spare parts, etc., which is never refunded to them.

APCPA leaders said that powerloom industry is one of the most vital segments of national economy contributing substantially towards foreign exchange earning besides providing jobs to more than one million wage earners.

They claimed that this labour-intensive and domestic industry of powerlooms is helping the present government not only in earning foreign exchange but also in providing livelihood to the jobless people.

"We are doing this service without any financial help from the government," they added and said that instead of adopting powerlooms-friendly policies, spinners have been blessed with refinance facility who are abusing it for personal gains ignoring the national interest.

They said that value-addition policy is being flouted that has been depriving Pakistan of much needed foreign exchange.

They demanded export of only 20 percent yarn of total yarn production and withdrawal of refinance facility on its export with levy of export duty on yarn export.

They said the government should accept it an export-oriented industry exempting it from income tax, wealth tax and other taxes.