ISLAMABAD — As the government has failed to resolve the yarn crisis, some 30 per cent work of the textile sector has been affected and majority of the textile units had close down due to the unavailability of the yarn from last few weeks, TheNation has learnt on Friday
According to the sources, unavailability of yarn even at the higher prices is getting serious with the passage of every day and majority of the industries in Faisalabad and Jhang and other countries had left the working. If the current crises remain for next few weeks’ country would not available to fulfill its export targets, the sources added.
It is worth mentioning here that in the ongoing year production of cotton in the international market is not sufficient and countries like China are importing it from Pakistan, which is considered one of the main reason for the yarn shortage in the country.
The sources further said that every year Pakistan exports about 25 per cent of the yarn to the other countries, while this year the export expected to be 30 per cent, which could create problems for the local industries.
Meanwhile, different associations of the textile industry believed that exporting yarn is the reason for the unavailability and they are demanding of the government to impose ban on the export of yarn in order to provide commodity to the local consumers. Small Power Looms Association already threaten to observe countrywide strike in the month of December if government did not impose ban on the export of yarn.
However, the government is totally failed to solve the said crisis as neither the talks, between the Minister of Textile Industry with all stakeholders, proved any good nor the Cabinet Committee on Textile found any solution to the problem. The cabinet committee on textile met under the chair of Federal Minister for Finance Shaukat Tarin few days back but did not announce any strategy regarding availability of yarn in the country.
The sources further said that if the government did not come with some strategy in next few weeks Pakistan would deprive of the textile orders of EU and USA that would further affect the growth of the textile sector.
Similarly, the yarn shortage emerged because of the black-marketing and storage of yarn in order to increase the prices. Domestic cotton prices have already surged by 25 per cent since the start of the current fiscal year. Neither the provincial governments nor the federal government took any action against those responsible for the blackmarketing
Federal Minister for Textile Industry Rana Farooq Saeed Khan said once that action would be taken against the hoarding and black marketing but despite passing of two weeks no step is taken.
Analysts and exporters anticipate further rise in the domestic cotton prices because of active buying by the international buyers who have flocked Pakistan amid a shortfall in world cotton production.
Source: PRGMEA
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