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Published 09 Feb, 2008 12:00am

Apparel industry seeks yarn import via Wagha

KARACHI, Feb 8: The textile apparel industry has urged the government to allow import of cotton yarn from India via Wagha border.

At present a sizeable quantity of cotton and cotton yarn is imported from the Indian Punjab, but has to be moved to Bombay from where it is shipped to Karachi, which increases freight charges and consumes a lot of time.

In an appeal to caretaker Prime Minister Mohammadmian Soomro, the leaders of the apparel industry stated that if the government allows import of cotton yarn via Wagha border, it would help the crisis-ridden sector to cut down its production cost and meet export commitments in the world market.

They stated that since there was a short cotton crop, local prices have increased manifold and have made exports unviable.

However, India has harvested a bumper cotton crop, and there was a surplus cotton and yarn which is being exported to many countries.

However, the apparel industry could not benefit from the proximity of distance and instead it has to bear extra cost by transporting cotton yarn from the Indian Punjab to Bombay from where it is shipped to Karachi.

The industry stated that since the prime minister was going to inaugurate a customs check-post at Wagha border this week to facilitate overland transportation of cargo between Pakistan and India, it would be in the best interest of value-added textile industry to get permission of importing cotton yarn through land route.

Pakistan Hosiery Manufacturers Association Chairman M Naqi Bari said that while exporters had been confronting such issues, foreign buyers had doubts over local exporters’ ability to make timely delivery of export commitments.

Pakistan Sweaters Exporters Association Chairman Rafiq Godil said that at present textile apparel industry was in the grip of a number of serious issues, mostly related to cost.

If the government allows import of cotton yarn through Wagha border, it would give some relief as cheap yarn from India would help cut cost, he added.

He further stated that short cotton crop had resulted in high cotton yarn prices and there was no way out except to explore cheap sources of cotton yarn from the neighbouring country.

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