Muhammad Jawed Bilwani, The Chairman of Joint Forum Pakistan Apparel
By: Iqbal Ahmed Khan
He talked to Business Monitor in his special interview and discussed all the outstanding issues pertaining the textile industry. Muhammad Jawed Bilwani, Coordinator of Value Added Textile Forum having representation from all value adding textile associations of the country, apprehended that the value added textile industry would be facing serious problems unless export of these vital textile raw materials is completely banned.

Besides huge loss of foreign exchange to the country and big increase in the pertaining un-employment, it would take us much time to re-organize this sector. He pointed out that Bangladesh, which has strong value adding textile sector, now-a-days faces serious crisis for non-availability of cotton and yarn.

This country grows not single bale of cotton but earns around dollars 15 billion per annum by export of textile products after value addition, he pointed out. He said India has already imposed total ban on export of cotton and yarn to save her domestic value-added textile industry. India was the main source of cotton supply to Bangladesh who is now looking for sources of cotton.

This might encourage our cotton or yarn producers to export their stock for high profit, which would prove a great blow to our entire chain of value, added textile sector, he maintained. "Like Bangladesh, we would be crying for cotton/yarn if the leakage is not immediately stopped," Mr Bilwani remarked.

In reply to query, Pakistan Apparel Forum chairman Javed Bilwani said that the forum had been urging all ministries, the State Bank of Pakistan, Federal Board of Revenue and the Federal Tax Ombudsman for the last six years to take action against fraudulent practices of freight forwarders (consolidators) for making changes in shipping documents, but to no avail.

Mr Bilwani, however, claimed that for the first time on the orders of the Sindh High Court and after vacating a stay, the FIA in May this year initiated an inquiry. Responding to a question, the forum chairman asserted that there were around 2,000 such cases lying with the State Bank where freight forwarders on changing title in shipping documents deprived exporters of export proceeds.

Additionally, Mr Bilwani claimed that the FIA inquiry revealed that the director of the freight forwarding company got prepared 11 forged Master Bills of Lading during October to December 2006, and the name of the exporter (shipper) was allegedly replaced or changed with freight forwarding company's name and similarly the name of the consignee (the local bank) was changed with a US-based logistic company.

He expressed openly that Non-availability of cotton yarn in the country is causing difficulties for the value added textile exporters to fulfill international demands and exporters may face a number of cancellations of valuable orders and lose foreign markets resulting in the closures of many textile units and mass unemployment.

When it was questioned that what was the demands of exporters, he replied that the exporters urged the government to take remedial steps immediately to make amendments in Ministry of Commerce S.R.O. 26(I)/2010 dated 14th January, 2010, which is complete eyewash and not beneficial for the value-added textile sector. He further said that though a number of meetings have been held between stakeholders and the government; and facts and figures, showing rampant exports of yarn that are taking toll on value-added textile export sector, have been presented by the sector entrepreneurs, despite which, the government made manipulations in connivance with vested interests and issued an unrealistic S.R.O. that aims to swell cotton yarn export much more than estimated, regretted Mr. Bilwani.