ICST expressed concern on rising price of cotton yarn in the local market

Lahore: Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt on Friday expressed concern on rising price of cotton yarn in the local market following imposition of ten percent regulatory in import of Indian yarn.

The decision will benefit lobby of spinning mills while hurting value-added textile sector including garments and home textiles sector which is dependent on Indian yarn, he said,

Shahid Rasheed Butt said that the decision should be reviewed as value-added sector which is providing jobs to millions and contributing more than any commercial part of the economy to the export earnings presently at 45 percent of total textile exports.

Rising input costs, burden of taxes, infrastructure, rules and regulations and law and order situation has increased cost of doing business which will go up by the recent decision which can compromise Pakistan’s position in the international market, he added.

The veteran business leader said that the regional countries are following good practices, paying hidden subsidies while India allows export of surplus cotton only which results in stability for value-added sector.

The recent decision will result in lost share of Pakistan to Bangladesh, Sri Lanka, China, Vietnam and India and may result in bankruptcies of many value-added units.