Sunday, December 10, 2023

Textile exporters requested Imran Khan for a forensic audit against the cotton mafia

Textile exporters have asked Prime Minister Imran Khan to order for a forensic audit of yarn producers to break the cotton mafia cartel, similar to how the PTI took action against the sugar mafia.

In a letter addressed to the Prime Minister, the Association of Manufacturers and Exporters of Ready-Made Clothing in Pakistan (Prgmea) pointed out that yarn producers have increased yarn rates by more than 40 percent despite falling cotton prices on the market international, reaching the exports of the garment sector. They also said that the cotton mafia proved to be stronger than the sugar mafia.

PRGMEA’s central president, Sohail Sheikh, called on the government to take immediate action to break the cotton cartel to send a strong message to all sectors that cartelization would not be accepted.

He also urged the Federal Board of Revenue (FBR) and the Federal Investigation Agency (FIA) to conduct information on wires dealers warehouses, which are said to be accumulating a large amount to create artificial shortages and manipulate prices in collaboration with manufacturers.

Moreover, The chief coordinator of Prgmea, Ijaz Khokhar, said that the arrival of low-cost cotton yarns from India by land approved by the ECC could have broken the powerful textile cartel, undermining the monopoly of yarn producers to artificially set rates tall.

Prgmea urged that the government allow duty-free imports of cotton yarn from around the world for at least six months to hold the commodities crisis that continues to hit the local market.

Globally, cotton prices have dropped significantly, but the commodity is still more expensive in Pakistan.

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