aptma ALL PAKISTAN. TEXTILE MILLS ASSOCIATION MOST IMMEDIATE APTMA/PO/MOCC/28/0678 28 October, 2020 Mr. Abdul Razzak Dawood ‘Advisor to PM for Commerce & Investment Ministry of Commerce Islamabad. Subject: Meeting with Value Added Associations on “Shortage of Yarn” Dear Razak Sahib, This has reference to the Zoom meeting held on October 26, 2020 on the subject captioned above. Sir, APTMA reiterates that there is no shortage of Yarn in the country. This “shortage” being agitated is entirely based on, among others, the following main commercial considerations; 1) Cotton which was trading at US 63.8 cents/Ib just 3 months ago is currently at US 76 cents/Ib increasing the cost of yarns Proportionately and thus squeezing margins even further. 2) Exporters have booked orders at an exchange rate of Rs. 168 - 170 to a US dollar whereas the exchange rate is currently Rs. 161.5. 3) The notion that Pakistani Exports, due to shortage of yarn, will miss “Christmas Orders” cannot be maintained as manufacturing and shipping post yarn would in itself require at least 3-4 months which window has long passed. These commercial reasons have resulted in squeezing of margins and exporters are consequently trying to recoup or minimize their loss through as much reduction in input prices as possible. The argument that reduction in duty would increase supply or reduce cost for exporters is not based on logic as they are already entitled to Duty Free import of Yarn through DTRE or Bond. APTMA has and always will continue to support the import and simplification of procedures for Duty Free raw materials or other inputs for export purposes. We therefore request that considering the merits of the case Duty or Regulatory Duty not be withdrawn on Cotton Yarn, however, if Regulatory Duty is to be removed it should be removed for a fixed time period of say 3 months and the yarn availability be re-appraised at that time, ALLPAKISTAN. TEXTILE MILLS ASSOCIATION PRINCIPAL OFFICE STH FLOOR EVACUEE TRUST COMPLEX 5/1, ISLAMABAD TEL +92(S1) 8460026-7 /051-2201984, 227145 Fax. +92(51) 2627614 EMAIL apemasbapoma org pe se apa orgaptma We reiterate that any blanket approval for import of Duty-Free Cotton Yarn would lead to dumping of Cotton Yarn and it would also result in misuse of the facility. This will result in closure of many of the units and the stopping in track of many expansions and new projects planned or are underway, We further reiterate that the value-added industry was only concerned about supply of 100% cotton yarns and not about polyester cotton mixed or pure polyester yarns. As you will appreciate that polyester staple fber is already subject to 7% Duty and hence Duty or Regulatory Duty on blended yarns should not be reduced under any circumstances, With Best Regards, Yours Faithfully, ihahid Sattar Executive Director 0333-5237680 1, Mr. Kanwar Usman (DG Textiles, RDA Cell) ALL PAKISTAN ‘TEXTILE MILLS ASSOCIATION PRINCIPAL OFFICE STH FLOOR, EVACUEE TRUST COMPLEX FI, SLAMABAD ‘TEL +92(S1) 6460026.7/081-2201964, 827145 FAX 492 (51) 2627614 EMAIL apumasb@apma orp evap rae