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Tag: PYMA

  • Yarn merchants urge SBP to stop rupee deterioration

    Yarn merchants urge SBP to stop rupee deterioration

    KARACHI: Yarn merchants have urged the State Bank of Pakistan (SBP) to stop the rupee depreciation against the US dollar otherwise it will make industry to continue business.

    Chairman Pakistan Yarn Merchants Association (PYMA), Saqib Naseem and Vice Chairman Sindh Balochistan Region, Muhammad Junaid Teli, while expressing deep concern over the continuous depreciation of the rupee and the sharp rise in the value of the dollar, requested the Governor State Bank of Pakistan, Reza Baqir, to adopt effective strategies for stability of rupee.

    READ MORE: PYMA seeks duty, taxes cut on yarn in budget 2022/2023

    In a statement, PYMA office-bearers warned that rupee devaluation was going to have a deep impact on inflation as it would raise the cost of doing business, making Pakistani goods non-competitive in the export market and unaffordable in the domestic markets.

    READ MORE: PYMA fears cancellation of export orders

    They highlighted the negative effects of the rising value of the dollar on the country’s economy, especially business activities, and said that on the one hand, the relentless storm of inflation was in full swing. On the other hand, the continuous depreciation of the rupee and the high level of the dollar has led to a huge increase in the production cost of the yarn business and industries.

    READ MORE: Saqib Naseem elected central chairman PYMA

    PYMA office-bearers Said, “Raw materials are not available in the country as per the industrial demand, the industries have to import the raw materials from abroad in order to continue uninterrupted production activities. However, these days the soaring value of the dollar has put the business community in a difficult position, especially the production costs of SMEs have skyrocketed.”

    READ MORE: PYMA demands cotton import through land routes

    Saqib Naseem and Junaid Teli requested the Governor State Bank, Reza Baqir to prevent further depreciation of rupee and to prevent the dollar from appreciating, adopt strategies that reduce the cost of doing business. This will definitely boost trade and industry and create ample employment opportunities.

    Otherwise it will be difficult to do business and run industries which will affect exports and also increase unemployment in the country.

  • PYMA seeks duty, taxes cut on yarn in budget 2022/2023

    PYMA seeks duty, taxes cut on yarn in budget 2022/2023

    KARACHI: Pakistan Yarn Merchants Association (PYMA) has proposed cut in duty and taxes on yarn in the forthcoming budget 2022/2023.

    The association demanded reduction in Customs Duty, Sales Tax, withholding income tax and abolishing Regulatory Duty and Additional Customs Duty on yarn in the next Federal Budget 2022/2023.

    READ MORE: CGT exemption on private company shares suggested

    In the budget proposals, PYMA Chairman Saqib Naseem, Vice Chairman Sindh Balochistan Region, Muhammad Junaid Teli, Chairman Standing Committee on Budget, Taxation Farhan Ashrafi, said that 13 per cent customs duty has been imposed on Polyester Pre-Oriented yarn (POY), we suggested that without any additional customs duty, it should be 7 per cent through SRO or tariff.

    READ MORE: KTBA proposes up to 20% capital gain tax on real estate

    “The product POY (5402-4600) is a medium yarn for manufacturing polyester textured yarn (DTY) which is considered a completely separate industry in India, China, Vietnam and Bangladesh,” they said, adding that polymerization plants require huge capital whereas texturizing units can be easily set up through SME sector. In addition, the industry can export DTY to international markets.

    According to PYMA’s budget proposals, 11 per cent customs duty is levied on Polyester Fully Drawn Yarn (5402-4700), while in the new budget, PYMA has proposed to reduce the customs duty to 7 per cent through SRO or tariff.

    READ MORE: FBR urged to issue rules for WHT on digital transactions

    Similarly, customs duty on Polyester Texturized Yarn should be reduced from 11 per cent to 9 per cent as fabrics made from artificial, synthetic yarns are used by the common man.

    PYMA termed the 2 per cent regulatory duty on polyester spin yarn as unfair and proposed to abolish it as zero percent which is the basic raw material of weaving and knitting industry. Therefore, there is no justification for imposing regulatory duty on it. They suggested maintaining the current 17 per cent sales tax rate which is adjustable.

    READ MORE: New import income tax regime should be abolished

    PYMA also called for eliminating the discrimination between commercial importers and manufacturers, and said currently withholding income tax on commercial importers of Yarn is 2 per cent while on manufacturers under SRO 1125 is only 1 per cent. Therefore, we proposed 1 per cent withholding income tax on both. Similarly, withholding tax on yarn traders should be reduced from 0.5 per cent to 0.25 per cent

    Saqib Naseem, Junaid Teli and Farhan Ashrafi, in the budget proposals, were of the opinion that due to continuous business recession and unstable economic situation, yarn traders are not ready for it, and they are reluctant to register with FBR. As a result, the national exchequer may face significant losses in terms of revenue.

    READ MORE: Adjustable advance tax proposed for corporate services

    In the budget proposal, PYMA pointed out the anomaly regarding the turnover tax, saying that it was agreed with top FBR officials that it would remain at 0.1 per cent, so it was suggested that the turnover tax be kept at 0.1 per cent.

  • 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…)
  • Yarn merchants demand reduction in customs duty

    Yarn merchants demand reduction in customs duty

    KARACHI: Pakistan Yarn Merchants Association (PYMA) has demanded reduction in customs duty from 11 per cent to 7 per cent on import of yarn.

    Central Chairman of Pakistan Yarn Merchants Association (PYMA) Saqib Naseem has stressed that the existing custom duty of 11 percent on polyester yarn has to be brought down to 7 percent as done in the past when the previous governments provided this much-needed relief through Textile Packages that led to improving the overall productivity of textile manufacturers and also enhanced the exports.

    Although the government in this year’s budget announced to bring custom duty down to 9 percent but that stands unchanged at 11 percent. Similarly, the anti-dumping duty also needs to be abolished in the larger interest of textile sector otherwise the export targets will not be achieved due to likely cotton shortages and higher customs duties, he added while exchanging views at a meeting during the visit of PYMA delegation to Karachi Chamber of Commerce & Industry (KCCI).

    General Secretary Businessmen Group AQ Khalil, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi and the Members of KCCI and PYMA’s Managing Committees were also present at the meeting.

    Central Chairman PYMA pointed out that commercial importers of yarn act as a bank for thousands of small-sized textile industries who cannot afford to import huge quantities of yarn but obtain this essential raw material from commercial importers therefore, the importers should be provided relief by reducing the exorbitant duties and duties which have to be brought at par with industries.

    He was of the opinion that prices of polyester yarn have risen sharply due to rising oil prices, increase in freight charges and the global shortage of containers. As a result, the textile industry, small and medium enterprises, especially power looms, were suffering due to high costs therefore, custom duties and taxes have to be brought down drastically.

    Saqib Naseem further requested KCCI to help in convincing the government to bring down the turnover tax back to 0.1 percent as many people were finding it hard to continue their business with high turnover tax due to limited margin.

    He also said that KCCI and PYMA have been enjoying cordial relations and it was heartening to see that many PYMA members have also discharged their duties at KCCI’s Managing Committee from time to time. “All PYMA members will go hand-in-hand with KCCI so that we could collectively work towards not only resolving PYMA issues but also other general issues of the business & industrial community”, he added.

    President KCCI Muhammad Idrees stated that the Karachi Chamber gives highest preference to all the issues being faced by PYMA members which were constantly being taken up with relevant ministers, advisors and all the authorities at the federal level. He said that although Finance Minister Shaukat Tarin always agrees to treat commercial importers of yarn and industries equally but the issue of higher duties on commercial importers stands unresolved as probably the bureaucracy was misguiding the minister. This pending issue has to be resolved and the commercial importers have to be provided relief by ensuring availability of a level playing field.

    PYMA delegation members also paid glowing tribute to Late Siraj Kassam Teli who always gave special attention and maintained good liaison with PYMA.

    KCCI urges SBP to restore PKR at Rs150 to dollar
  • 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…)