Textile Manufacturers Warn Strike Over Delayed Port Cotton Clearances.
During a debate, All Pakistan Textile Mills Association (APTMA) chairman Hamid Zaman states that if the government does not clear the imported cotton arriving in Karachi, the industry will force to stage a protest.
The chairman of the APTMA stated that the industry would fall short of its $25 billion export target this year due to a lack of raw materials, specifically raw cotton.
Textile exports will be limited to $16 billion to $17 billion this year
He made clear that the textile industry imports raw cotton and then exports it for four times the value of the import.
If nothing happen, 7 million people in the industry will be out of work in January.
“The industry has left with only 60 days’ raw materials, and if timely clearance of already arrived cotton does not begin from the port, textiles will completely shut down,” he added’
This will result in the unemployment of 25 million people across the country
As per Zaman, the textile industry has ordered 1.7 million bales of cotton from the United States, and 100,000 bales have already arrived at Karachi port, totaling more than $300 million.
To avoid an export crisis, the APTMA president urged the government to direct financial firms and the State Bank of Pakistan to open letters of credit for cotton foreign buyers on time.
In regard to inquiries, Zaman acknowledged that due to currency volatility, some exporters were unable to bring their export revenues back to Pakistan.
APTMA support was pledged for the cause as he encouraged the government to take action against those who were hoarding US cash.
The APTMA representative brought up another urgent concern, namely the fact that foreign companies were compel to pay more in demurrage and detention fees for imported goods than the worth of the commodities themselves.
Demurrages and detention fees have already assess, totaling Rs. 2 billion, and they are continuing to rise.
There is a severe lack of raw cotton on the local market, according to Kamran Arshad, senior vice chairman of the APTMA, and 15 million cotton bales are need to export $20 billion worth of cotton.
The government would lose billions of rupees in revenue, as per Asad Shafi, vice chairman of the association, if stores and markets were to close early.
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