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Joint strategy to tackle yarn price hike

RECORDER REPORT

FAISALABAD: A joint strategy to tackle the issue of yarn price hike and shortage of various counts in domestic market will be evolved in a joint meeting of powerloom owners, hosiery manufacturers and commercial exporters to be held on February 23, 2000, in APCEA Head Office.

This was disclosed by the Chairman, All Pakistan Cotton Powerlooms Association (APCPA), Rana Ikhlaq Ahmad, after a meeting of executive body, here on Tuesday.

The executive body expressed grave concern over the reckless export of yarn recording a steep decline in export of cloth, knitwears, bedsheets, towels and textile made-ups etc. and observed that this situation is affecting Pakistan's foreign exchange earning.

Talking to newsmen, APCPA chairman alleged the spinner of brewing another crisis by exporting yarn totally ignoring its domestic consumption. "Yarn is exported imprudently just for the refinance facility creating its shortage in the domestic market," he added and said that its hoarding has further aggravated the crisis recording unprecedented price rise of RS 65 per bundle.

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 the powerloom owners are also bearing at least 10 percent impact of GST levied on electricity, Sui Gas and spare parts etc. which is never refunded to them being unregistered firms.

Earlier addressing the executive body meeting, the leaders of APCPA, Khuwaja Mansoor Rahim Vice Chairman, Mohammed Akram Ghouri Former Chairman, Choudhry Abdul Haq, Senior Executive Member and Rana Faqir Ahmad, Executive Member, said that powerloom industry is one of the most vital segment of national economy contributing substantially towards foreign exchange earnings 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 by 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 production and withdrawal of refinance facility on its export with levy of export duty on yarn export.