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Tag: Pakistan Yarn Merchants Association

  • PYMA fears cancellation of export orders

    PYMA fears cancellation of export orders

    KARACHI: Pakistan Yarn Merchant Association (PYMA) has expressed fear cancellation of export orders due to non-production after suspension of gas to industries.

    Saqib Naseem, Central Chairman PYMA, Junaid Teli, Vice Chairman PYMA, have expressed deep concern over non-supply of gas to industries and appealed to Prime Minister, Imran Khan, Minister Energy, Hammad Azhar and Adviser Trade & Investment, Abdul Razzak Dawood to restore gas supply to Karachi’s industries, so that the industries may be prevent from catastrophe.

    READ MORE: Saqib Naseem elected central chairman PYMA

    In an appeal, PYMA office-bearers said that steps should be taken to get the yarn industry out of crisis otherwise all the industries will be ruined.

    They said: “The suspension of gas supply to export-oriented, general industries, SMEs, has severely affected production activities, which has caused great frustration to exporters and they are worried that if the gas is not restored at full pressure as per the demand of the industries then how will they fulfil the foreign orders in time.”

    READ MORE: PYMA demands cotton import through land routes

    They drew officials that if exporters fail to deliver export shipments as promised, there are fears of massive cancellation of export orders. “As a result, exporters will face huge financial losses as well as a huge negative impact on domestic exports.”

    Saqib Naseem and Junaid Teli appealed to Prime Minister, Imran Khan, Minister Energy, Hammad Azhar and Adviser Trade & Investment, Abdul Razzak Dawood to resolve the gas crisis and a policy should be formulated for taking the industrialists of Karachi out of serious crisis, so that the wheel of industries running smoothly and the country’s economy can be strengthened and the country’s exports can be increased also.

    READ MORE: PYMA demands cut in duty rates on polyester yarn import

    PYMA office-bearers warn the government that if the gas is not restored immediately then industries will be locked up and unemployment will flood. With the sharp decline in our exports, our dependence on imports will increase, which is contrary to the vision of Prime Minister Imran Khan.

    Therefore, to make it easy to run the industries to fulfil the vision of the Prime Minister. In order to create more industries and create more employment opportunities and by promoting exports, the country can move faster on the path of economic development.

    READ MORE: Yarn merchants appeal for not imposing regulatory duty

  • Yarn merchants appeal for not imposing regulatory duty

    Yarn merchants appeal for not imposing regulatory duty

    KARACHI: Pakistan Yarn Merchants Association (PYMA) has expressed serious concerns over reports suggesting imposition of regulatory duty on polyester yarns.

    Saqib Naseem, PYMA Central Chairman in a statement on Wednesday expressed deep concern over rumors circulating about lobbying for imposition of regulatory duty on imported polyester yarns by local manufacturers of polyester filament yarns.

    READ MORE: FPCCI urges measures to overcome gas crisis

    He urged Adviser to Prime Minister on Finance, Shaukat Tarin not to succumb to the pressure of local manufacturers, and to reject any proposal for imposition of regulatory duty on imports of polyester filament yarns, especially HS Code 5402.3300 and HS Code 5402.4700.

    Appealing in a letter to Finance Advisor Shaukat Tarin, Chairman PYMA said that the local manufacturers of polyester filament yarns were lobbying the concerned agencies, especially the Ministry of Commerce, to impose regulatory duty on imported polyester yarns.

    This would be extremely detrimental to the local consumers of polyester filament yarn, and would be against the government’s policy of ensuring the availability of raw materials to the industry and consumers at competitive prices.

    READ MORE: Yarn merchants demand cut in interest rate

    Saqib Naseem said “In the letter that despite the fact that local manufacturers of polyester filament yarns are already enjoying discounted tariffs, efforts to implement regulatory duties will significantly increase the production cost of local industries”, fearing that therefore, no such proposal should be considered which is detrimental to the domestic industries.

    PYMA chairman was of the opinion the current custom duty of 11% is rather excessive. For your information the custom duty on polyester staple fiber is 7% and the local manufacturers of PSF seem to be doing with this level of protection. There is no significant production cost difference between polyester staple fiber and polyester filament yarn.

    READ MORE: PYMA demands cotton import through land routes

    He added that the weaving and knitting industry (user industry) is already facing a very challenging situation due to very high cotton and polyester yarn prices, and imposition of regulatory duty would be extremely counterproductive especially when the local user industry has to import 65 per cent of its requirements of polyester filament yarn from foreign suppliers.

    Saqib Naseem urged the government not to listen to the unjust pressure of local manufacturers of polyester filament yarns to impose regulatory duties, and only take measures to reduce the cost of production of domestic industries and stabilize the economy.

    READ MORE: Saqib Naseem elected central chairman PYMA

  • Yarn merchants demand cut in interest rate

    Yarn merchants demand cut in interest rate

    KARACHI: Pakistan Yarn Merchants Association (PYMA) on Friday demanded the State Bank of Pakistan (SBP) to cut interest rate to provide relief to coronavirus hit economy of the country.

    In a statement Saqib Naseem, Central Chairman Pakistan Yarn Merchants Association (PYMA), while expressing deep concern over the non-reduction of interest rates by the SBP despite the demands of the business community, said that it has recently increased interest rates by 150 basis points, and news was circulating for increasing interest rates further in the coming days, which will have a devastating effect on the corona-hit economy.

    In particular, there will be a significant increase in the production cost of trade and industry, as well as a storm of inflation.

    PYMA office-bearer said that economists should give suggestions in the interest of the economy, which would boost business and industrial activities in the country, and bring prosperity.

    However, it has been observed that most of the measures taken by the government have increased business and industrial costs and it is becoming extremely difficult for the business and industrial community to run their businesses and industries.

    “The severe economic crisis caused by the Corona epidemic, the business and industrial community was already facing a severe shortage of capital and they were struggling to survive. In these circumstances, raising interest rates by the SBP will lead to a severe financial crisis which is not in any way in the favour of the national economy”, they feared.

    Saqib Naseem appealed to an advisor to the Prime Minister on Finance and Revenue Shaukat Tarin to reduce interest rates immediately to save trade and industry from collapse so that the traders have easy access to capital and they can continue their business and industrial production activities while overcoming all difficulties.

    Otherwise, business and productive activities will be hampered for them, which will have a very negative impact on the economy.

    Saqib Naseem elected central chairman PYMA
  • FPCCI urges measures to overcome gas crisis

    FPCCI urges measures to overcome gas crisis

    KARACHI – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called upon the government to implement effective measures to alleviate the ongoing gas crisis, emphasizing the need for uninterrupted gas supply to industries and a reduction in electricity tariffs.

    (more…)
  • Merchants demand duty concession on yarn import

    Merchants demand duty concession on yarn import

    KARACHI: Pakistan Yarn Merchants Association (PYMA) has demanded the government to reduce customs duty and abolish anti-dumping duty on import of polyester yarn.

    In a statement on Friday, Saqib Naseem, Central Chairman Pakistan Yarn Merchants Association (PYMA), Muhammad Junaid Teli, Vice Chairman, Sind & Balochistan region, has urged the government to cut the customs duty on polyester yarn and abolish anti-dumping as per announcement in budget 2021-22.

    They said that the government had announced in the budget 2021-22 to reduce the customs duty at 9pc on polyester yarn, the main raw material of the textile industry, but after many months, neither the customs duty nor the anti-dumping duty has been reduced.

    At the first meeting of the Managing Committee, PYMA office-bearers unanimously demanded to the Prime Minister Imran Khan, Advisor on Trade & Investment, Abdul Razak Dawood, and Finance Adviser, Shaukat Tarin, that the government fulfil promise to reduce customs duty from 11pc to 9pc on polyester yarn. Similarly, the anti-dumping duty should be abolished in the best interest of the textile industry, especially SMEs.

    M. Usman, Khurshid Shaikh, Hanif Lakhany, Saqib Goodluck, Farhan Ashrafi, Jawed Khanani, Altaf Haroon, Noman Ilyas, Asif Amanullah, Behroze Kapadia, Shoaib Sharif, Rizwan Almas, Sohail Nisar and Rizwan Diwan were also attended the meeting.

    Saqib Naseem, Junaid Teli further said that the prices of polyester yarn have gone up due to rising oil prices, excess freight charges and shortage of containers in the global market. As a result, the textile industry, small and medium enterprises, especially power looms, are suffering from high costs. They are having difficulty making cloth while it is becoming extremely difficult for them to run the units.

    PYMA office-bearers added that the steady rise in production costs has forced SMEs and small businesses to consider whether to continue their production activities in the current dire economic situation, as the high cost, continuing to work for SMEs and small businesses is nothing but a loss-making.

    Saqib Naseem elected central chairman PYMA
  • Yarn Merchants demand massive cut in POL prices

    Yarn Merchants demand massive cut in POL prices

    KARACHI: Pakistan Yarn Merchants Association (PYMA) has demanded Prime Minister Imran Khan of massive reduction in prices of petroleum products in order to make industrial activities viable.

    Saqib Naseem, Central Chairman Pakistan Yarn Merchants Association (PYMA) and Muhammad Junaid Teli, Vice Chairman, Sind & Balochistan region in a statement on Monday expressed serious concerns over the sharp rise in the petroleum prices.

    They appealed to Prime Minister Imran Khan to significantly reduce in the petroleum prices in the best economic, industrial and public interest of the country, so that the business & industry can survive in COVID-ridden economy.

    The PYMA office bearers said that despite the adverse economic situation caused by the COVID-19 pandemic, the sharp rise in prices of petroleum products by the government was a matter of grave concern to the business community, as the increase in the prices of petroleum products is not only a sign of a huge increase in inflation but also cause a huge increase in the production cost of business and industry.

    They said: “Raw materials for industries in particular, whose prices have already skyrocketed, will now rise to unbearable levels with the government’s recent move, which will destroy industries, especially SMEs, and increase unemployment in the country.”

    The PYMA officer bearers appealed to Prime Minister Imran Khan to reverse the recent rise in petroleum prices, and significantly reduce prices to make it easier to do business and run industries.

    They also requested the Prime Minister to review the economic situation of the country and direct the economists to formulate policies according to the ground realities so that steps can be taken to make the country economically stable and prosperous.

    Otherwise, in the current situation, it will be very difficult for traders to do business and for industrialists to run industries, which will be a severe blow to the country’s exports.

    Saqib Naseem elected central chairman PYMA
  • Saqib Naseem elected central chairman PYMA

    Saqib Naseem elected central chairman PYMA

    KARACHI: Saqib Naseem has been elected unopposed central chairman of Pakistan Yarn Merchants Association (PYMA) while Javed Asghar elected senior vice chairman for the year 2021-22.

    (more…)
  • PYMA demands cotton import through land routes

    PYMA demands cotton import through land routes

    KARACHI: Pakistan Yarn Merchants Association (PYMA) on Tuesday demanded the government to allow duty free import of cotton and cotton yarn through land routes, including India.

    The PYMA appealed to Prime Minister Imran Khan to take steps to reduce the cost of production of the value-added textile industry, in view of the shortage of cotton, cotton yarn and the skyrocketing prices and allow duty-free import of cotton and cotton yarn from Turkey, India and Uzbekistan by land. So that exporters can compete in the ongoing price race in international markets.

    In the appeal to Prime Minister, Hanif Lakhany, Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) & Senior Vice Chairman Pakistan Yarn Merchants Association (PYMA), Farhan Ashrafi, Vice Chairman PYMA and convener FPCCI’s Central Standing Committee on Yarn Trading, said that the value-added sector in the country is facing immense difficulties due to shortage and price of cotton and cotton yarn reaching record levels, as cotton yarn is not available to these export industries even at high prices as per the production demand.

    “If this situation continues, not only will it be difficult to fulfil export orders, but Pakistani exporters will also lose the ability to compete in global markets. Which could have a negative impact on the country’s exports, so the government should seriously consider PYMA’s proposal in the best interest of the country’s economy”, they feared.

    PYMA office-bearers added that the exporters in the value-added sector are reluctant to accept new orders due to difficulties in procuring basic raw materials. Due to which these orders can be transferred to other countries.

    Hanif Lakhany, Farhan Ashrafi appealed to Prime Minister Imran Khan to assist exporters in fulfilling old export orders in time and taking new orders, while also issue directives to allow duty-free import of cotton, cotton yarn from Turkey, India, and Uzbekistan by land. This will not only reduce the import period of raw materials but will also help in reducing the cost of freight charges.

    Yarn traders demand restoring turnover tax rate at 0.1pc
  • Yarn merchants demand date extension for filing sales tax return

    Yarn merchants demand date extension for filing sales tax return

    KARACHI: Pakistan Yarn Merchants Association (PYMA) on Wednesday urged the tax authorities to extend the date for payment of sales tax and filing monthly return for the period April 2021.

    In a joint statement, Hanif Lakhany, Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and PYMA Senior Vice Chairman and Farhan Ashrafi, Vice Chairman PYMA & convener FPCCI’s Central Standing Committee on Yarn Trading, have urged the Chairman of Federal Board of Revenue (FBR) for extension in dates of payment and submission of Sales Tax and Federal Excise Return for the Tax Period of April 2021, by at least 2 weeks, as business community could not file sales tax and federal excise returns due to the long Eid holidays.

    In a letter to FBR Chairman Asim Ahmed, Hanif Lakhany and Farhan Ashrafi stated that in response to PYMA’s demand for extension till May 31, 2021, the dates for filing sales tax & FE returns extended till May 18, 2021 only.

    “But the Eid holidays did not benefit the business community and they could not prepare and submit their sales tax and federal excise returns for the month of April 2021 in the limited number of days announced,” according to the statement.

    “It is difficult for the business community to work in the face of the COVID-19 pandemic, given the already limited business hours and the risks of the epidemic,” they added.

    In such a situation, the FBR needs to make it easier for the business community to file their taxes easily.

    Hanif Lakhany and Farhan Ashrafi requested the Chairman FBR to extend the deadline for submission of sales tax and FE returns by at least 2 weeks, so that the business community can submit their returns without any hassle, which will be warmly welcomed by the business community.

  • Yarn traders demand restoring turnover tax rate at 0.1pc

    Yarn traders demand restoring turnover tax rate at 0.1pc

    KARACHI: Pakistan Yarn Merchants Association (PYMA) has informed the Federal Board of Revenue (FBR) that present turnover tax rate for yarn traders is very high and many traders may resort to shutdown their factories at this high rate.

    Farhan Ashrafi, Vice Chairman of Pakistan Yarn Merchants Association(PYMA) & convener FPCCI’s Central Standing Committee on Yarn Trading and Khurram Bharaa, former SVP, have demanded Muhammad Javed Ghani, Chairman Federal Board of Revenue (FBR) to withdraw 1.5 turnover tax imposed on yarn traders and restore the previous rate of 0.1 percent.

    “Otherwise, the majority of yarn traders will be forced to close their businesses, which are already badly affected by the Corona epidemic and are facing severe financial crunch.”

    A letter to FBR chairman, Farhan Ashrafi informed that PYMA members, who are yarn traders have brought attention towards this important issue, as they were doing business in large volume but unfortunately at nominal rate of profit margin which is 1pc even less.

    By virtue of SRO.333 (I) 2001 dated 02.05.2011, the traders of yarn had been subject to turnover tax at concessional rate 0.1pc, which constitutes about 10pc of their margin. Provision of rate of minimum tax 0.1pc was made under clause 45 (A) second schedule to the income tax ordinance 2001.

     “Because of some oversight traders of yarn were not included in the purview of minimum tax under the first schedule Part-1 (Division IX) of the Income tax ordinance 2001, which would be the correct approach to treat the levy of concessional rate on yarn traders, as is the case with various other sectors and persons”, they added. Due to this lacuna a state of confusion remains about the levy of tax and frequent changes are made in the rate of turnover tax without consultation with stakeholders.

    Khurram Bharaa said that to compound the misery of yarn traders an amendment was made through Finance Act 2020, whereby Yarn Traders have been taken out of the scope of clause 45A (Part IV of 2nd Schedule) and the exemption from application of minimum turnover tax under Section 113 has been withdrawn, which prescribes 1.5pc turnover tax.

    Accordingly, the yarn traders are how subject to turnover tax at the rate of 1.5pc, which is way above their actual margin. Consequently, many traders of yarn have to discontinue their business unless the previous rate of 0.1pc is restored.

    Farhan Ashrafi asked to FBR chairman to remove the anomaly by insertion of the provision of minimum turnover tax at 0.1pc for the yarn traders in the first schedule Part-1 Division IX (exempting yarn traders from minimum 1.5pc tax under section 113 of income tax ordinance 2001).

    He requested Javed Ghani for intervention in the matter will help to rescue the complaint tax-prayers, who are conducting a large volume of trade and sustaining the textile sector of Pakistan.