ISLAMABAD (June 03 2010): National Assembly Standing Committee on Textile has recommended to the government to extend 15 percent Regulatory Duty (RD) on the yarn export for indefinite period after July 12, 2010 to save the value-added textile sector, as the international market would witness shortage during the next season.
The NA body, which met with Haji Muhammad Akram Ansari in the chair, made these recommendations while discussing the current alarming situation of the textile industry. Federal Minister for Textile Industry Rana Muhammad Farooque Saeed Khan also attended the meeting.
Federal Minister for Textile Industry informed the Committee that imposition of 15 percent RD on yarn export has helped in stabilisation of yarn prices in domestic market. He said that it would continue till July 12, 2010. On this, the members asked the minister to continue imposition of duty to ensure availability of yarn for the local industry as the international market would see a 21 percent shortage of yarn next year. The Committee also recommended to seek help from all the major banks for supporting the sick textile units.
The Committee also strongly reacted against APTMA's statement regarding Textile Minister, accusing him of taking bribe from the Association. They said that APTMA has not only levelled baseless allegations, but has also insulted the parliamentarians.
Earlier, Minister for Textile Industry apprised the Committee that he had invited the representatives of APTMA, who called on him on 19th May, 2010 and presented their problems. APTMA's office-bearers were of the view that value added yarn be excluded from the Regulatory Duty and the rate of the duty should be lowered. The Minister further informed that he has also urged value-added sector to arrive at a mutually agreed policy stance. A final agreement to this effect among all the stakeholders will be inked tomorrow on 3rd June, 2010, he hoped.
The Members of the Standing Committee appreciated the efforts made by Minister in bringing all the textile sector stakeholders on one table. The Committee directed that the spinning mill owners be restricted to have cotton bales stock for three months at the most.
The Committee also stressed upon the Ministry to make full efforts to get the administrative control of Pakistan Institute of Fashion & Design, Lahore currently being controlled by Ministry of Commerce. The meeting was attended by Chaudhry Saeed Iqbal, Syed Amir Ali Shah, Chaudhry Iftikhar Nazir, Waseem Akhtar Sheikh, Rana Asif Tauseef, Muhammad Asim Nazir, Abdul Rashid Godil, MNAs and senior officers of the textile ministry.