Govt urged to help clear import consignments from China

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KARACHI: SITE Association of Industry Patron Zubair Motiwala on Tuesday appealed to the government to allow early clearance of imports consignments containing dyes and chemicals from China.

“Pakistan’s imports from China are around $12 billion and most of those comprise dyes and chemicals, which are basic raw material for the textile sector and the biggest foreign exchange earning sector in Pakistan,” Motiwala said in a statement.

He said the prices of raw material were jacking up due to stuck up consignments at the Chinese ports, while other alternative suppliers such as Korea, Taiwan and India had either stopped supplying or were quoting 30 to 35pc higher prices.

“Our members complain that it is becoming difficult for them to continue with the production activities due to shortage of raw material, while prices in the local market have gone up by 50 to 100pc,” he added.

Motiwala further said in such a scenario, an opportunity of an increase in exports had now become the question of survival for the local textile industries. “Everyone is talking about increasing exports from the country, but the fact is that production cannot be undertaken in the absence of raw material.”

“Value-added textile sector requires ample quantity of dyes and chemicals to complete processing and finishing of fabric.  It is obvious that no one keeps the inventory for more than one or two months due to cash flow constraints as large amount of exporters is stuck in the sales tax refunds,” he added.

Motiwala appealed to the prime minister, the finance adviser and the commerce minister to take urgent measures and direct Pakistani Embassy and Consulate in China to get consignments cleared.

He feared if the situation prevailed, other countries would increase raw material prices further.

Motiwala also urged the government to immediately withdraw all the levies and front loading with immediate effect so that there should be minimum burden on cost escalation on the products, which were being sold earlier to this crisis.

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