Textile ancillary industry has urged the Government to impose ban on export of cotton to ease the rapidly rising yarn prices as it is causing damage to the viability of value-added textile goods on the world markets. Textile exports have already registered a steep fall during December 2007.

Short cotton crop has pushed prices above import parity at Rs 3,300 per maund and this was resulting in increase in yarn prices, pushing up the cost of inputs of textile industry. The industry had been complaining of high cost of production owing to frequent rise in utilities, such as power and gas tariffs, but soaring cotton prices have further deteriorated the situation. Javed Bilwani, Chairman, Pakistan Hosiery Manufacturers Association (PHMA), said there was an urgent need for re-evaluating the current situation and the government had to ensure that the textile exports stay competitive to control rapidly widening trade imbalance. In view of short cotton crop there seems to be no logic to export the produce and urged the government to impose ban on export of raw cotton, otherwise, the industry would start closing down.