Cotton duties will force closures, claims APTMA
The All Pakistan Textile Mills Association (APTMA) says the government’s decision to impose a15% duty on cotton yarn exports will force large-scale mill closures.
According to APTMA chairman, Anwar Tata, the country exports around 50,000 tonnes of yarn each month and his concern is that there will be a huge yarn surplus in the country as manufacturers will not be able to afford to export their yarns. The profit margin for the spinning industry, he claims is just 2%.
Long term, Mr Tata believes the yarn sector will collapse if the government offers manufacturers no assistance. Spinners have already agreed not to import cotton for the next two months and to use the cotton they would normally export to meet domestic demand. As a result, the industry is set to lose around $200 million per month in yarn exports, the chairman claims.
