Due
to the yarn shortage caused by its massive export to the other
countries, the value-added sector of textile is observing a complete
strike in the country for the last two days. However, the Federal
Cabinet’s Committee on Textiles called an emergency meeting on
Wednesday to discuss the demands of this sector”.The meeting,
chaired by Advisor to PM on Finance Dr Hafeez Sheikh, discussed the
ongoing yarn crisis with stakeholders. The meeting later decided to
impose duty on the yarn export ..Sources in the value added sector
informed TheNation that the ongoing yarn crisis has drastically slashed
the exports besides rendering thousands of people unemployed in the
country during the last six months. The sources believed that the
government should fulfil the demand of local industries instead of
exporting the yarn ..They were of the view that the yarn crisis
was worsening day by day and the value-added sector had launched a
protest movement throughout the country including Faisalabad, which is
the hub of the textile industry. Dozens of industrial units have ceased
to operate due to the yarn shortage whereas hosiery, towel and the
remaining industry of home textile is facing a severe crisis ..According
to the sources, the government was considering two options for the
solution of the crisis including imposition of 25 percent R&D or
complete ban on export of yarn as proposed by the value-added sector,
however, the committee decided to impose 15 R&D on the yarn export..It
is worth mentioning here that in the present year production of yarn
was not sufficient in China and they imported the commodity from
Pakistan, which created massive shortage in the country .
Date:5/13/2010
Source:www.textilemachinerylive.com