www.thefinancialdaily.com  Yarn export ban-calls fret APTMA KARACHI: Shahzad Ahmed, Chairman, All Pakistan Textile Mills Association (APTMA) commenting on the news item published in a section of press termed the demands for imposition of immediate ban on export of cotton yarn very disturbing. He said that the restriction on export of cotton yarn -- which was abolished on 26th July -- had created huge problems for the spinning industry and in fact it became extremely difficult to even maintain operations in order to keep the units operational and meet our commitments. It appears that intrigues are once again in the offing to blackmail the spinning industry and the country once again. While the situation with regard to damage to standing cotton crop is not yet clear, arrangements have already been made to maintain stability in the market by importing four million cotton bales out of which one million bales have already been booked. The spinning industry is paying international prices for the imported cotton as well as for the home-grown cotton. With this pricing level of a critical production input to the spinning industry, demand for a ban on exports of cotton yarn, would certainly cripple its competitiveness, increase its liquidity problems and lead to laying off huge numbers of labour. In the prevailing situation of devastating floods, unemployment and poverty, this would add another dimension to the political challenges facing the government. APTMA reckons that demand for frequent shifts in policy tends to cause serious distortions in the market mechanism and severely inhibits all sectors from planning a long term course in order to fulfill export commitments in which three to four months of advance commitments are required. The Chairman APTMA further said that any adverse action would lead to hamper import of raw cotton which is the basic raw material of the spinning industry resulting in closure of number of spinning mills. Rather the government should take positive measures for the revival of sick and closed spinning mills to improve the supply of yarn in the country. APTMA believes that it is strategically important not to impose restriction on export of cotton yarn in the larger interest of a seriously ailing economy and live in the environment of Free Trade Policy, Chairman APTMA added.-PR