Export of yarn is going to create a shortage and give rise to an increase in its prices in the local market, which will ultimately decrease  the quantum of exports by apparel sector.

The yarn exporters have already planned to export this basic raw material, and this fear is expressed in the local market.

Apparel exporters fear that the country would lose million of rupees in foreign exchange if the Government encouraged the yarn export. Yarn export earns $2.16 per kg to $2.44 per kg, whereas (the value-added) apparel export earns $6.50 to $15 per kg in the world markets.

The country's apparel sector is likely to face huge setbacks in terms of exports in the wake of possible export of yarn in March this year, said Javed Bilwani, Chairman of Pakistan Hosiery Manufacturers Association (PHMA).

He demanded of the Government to impose duty on the export of yarn, and grant an exclusive subsidy on the commodity's sale in the local market, only to apparel exporters and manufacturers.