Pakistani apparel sector hit by sharp hike in yarn rates

The 20 per cent rise in cotton yarn prices due to cartelization by local manufacturers, who are holding stock to create artificial shortage, has hit the export-oriented Pakistani apparel sector hard, says the Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA), which has urged the government to take measures to address the issue.

PRGMEA (north zone) senior vice chairman Sheikh Luqman Amin said the export target would not be achieved due to high energy cost and discriminating import duties on industry raw material, Pakistani newspapers reported quoting a press statement issued by the association.

Amin requested the government to abolish additional regulatory duty on cotton yarn, reduce all input costs and release funds to the central bank for immediate payment of duty drawback of taxes to the exporters under the Prime Minister’s Package.