KARACHI: The government should impose a ban on coarse yarn export in order to save the value added towel sector.

Chairman Pakistan Towel Manufacturers Association (TMA), Feroze Azam said due to export of coarse yarn, our competitiveness and cost of doing business has been enhanced.

He said, "We export quality towel by using our coarse yarn and due to shortage of raw material the towel sector was facing hard to meet production cost."

Under these circumstances the towel sector will be forced to minimise its economic activity and as a result, export to the tune of $1 billion will be affected.

He said the TMA has been entrusted by the government with the job of management and distribution of quota of towels, terry fabrics and other made-up to its members.

He said the TMA was recognised by the government of Pakistan on August 9, 1976 as a 'B' class association. Talking to Daily Times, member Pakistan Cotton Yarn Mer-chant Associ-ation (PCYMA), Ghulam Rabbani said, "The government should take up this matter seriously and convene a joint meeting of all stakeholders in order to resolve the issue amicably."

Rabbani said, "Our domestic coarse yarn is still cheaper in the global market with high quality and available at local market around Rs 30 per pound."

He said in open market economy, there should not be any ban on export or import except ban on import of luxury items.

He said around 70 percent of local yarn is used by the value addition sectors in the country and only 25 percent to 30 percent coarse yarn is exported to China, Sri Lanka, India, Bangladesh, Indonesia and Thailand.

He said Pakistani exporters have a clear edge over the competitors in the international market due to better quality and cheaper rates of the commodity.

He said coarse yarn's export to Bangladesh, Sri Lanka and India was significant as these countries' domestic prices are higher as well as their quality is not as fine as ours.

Towel industry in Pakistan was practically non-existent prior to 1965. It started on a very small scale in 1965. He said after covering some stages, the towel manufacturing group was formed locally at Karachi and got recognised by the Ministry of Commerce in May 1972.

In the year 1976 the group was elevated to the status of an association on all Pakistan basis and got affiliated with the Federation of Pakistan Chambers of Commerce and Industry.