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News Clips 26 June, 2015


[ DLTL Order 2015: Claims can be submitted till July 31 ]
[ Massive decline in exports likely to continue: PTEA ]
[ Buyers remain eager for fine lint amid range-bound trading ]

DLTL Order 2015: Claims can be submitted till July 31   [ top ]

Business Recorder, June 26, 2015
The federal government announced to extend date for submission of claims of Drawback of Local Taxes and Levies Order 2015 Budget Incentive for Export of Value Added Sector (excluding textiles). According to Ministry of Commerce's Notification No 1(26)/2013-SO (TP) dated June 19, 2015, the federal government has extended the date of submission of claims from June 30, 2015 to July 31, 2015. Ministry has made it clear that no claim will be accepted after August 1, 2015. All other instructions on the subject shall remain unchanged. 

The State Bank of Pakistan has advised authorised dealers to bring the same to the notice of all their constituents. 

Massive decline in exports likely to continue: PTEA   [ top ]

Business Recorder, June 25, 2015
"Massive decline in textile exports in May 2015 is alarming and this trend is likely to continue in future unless the industrial crisis would be addressed." Sohail Pasha, Chairman and Rizwan Riaz Saigal, Vice Chairman Pakistan Textile Exporters Association (PTEA) stated this while talking to newsmen here on Wednesday. They said that government's target to double textile exports appears to be a herculean task in the perspective of 5.91 percent drop in textile exports in May over the same month of previous year. 

Numbers of coming months might be even worse, as the textile industry, particularly in Punjab is in grip of severe crisis. Giving details, they said that country exported textile goods worth US 1.12 billion dollars in May as compared to exports of US 1.19 billion dollars in same month of last year showing a hectic decline of 5.91 percent. 

Textile exports were also down by 1.70 percent on comparison with July-May period of previous fiscal, they added. Export of value added items witnessed negative growth as cotton cloth down by 15.70 percent, knitwear 11.32 percent, bed wear 9.80 percent and towels 9.23 percent. 

Mentioning the energy crisis, they said still 33 percent gas is available to industries in Punjab. Similarly, the menace of power loadshedding is plaguing the industrial sector. Textile exporters are pinpointing the root causes of industrial decline with repeated requests for necessary remedial steps, but government remained silent and no proper strategy was carved out to save textile sector from crisis, they said. 

PTEA Chairman Sohail Pasha was of the view that textile exporters are working under extreme pressure. We have been forewarning the government about the fast looming crisis, but government failed to understand the gravity of the situation and no steps have so far been taken to ratify the situation. Regional rivals India, China and Bangladesh are creeping into our traditional markets throwing the Pakistani textiles out. Growing energy shortage had affected almost one-third of the country's textile manufacturing capacity and adversely hitting its reputation as a credible supply source. He said due to energy shortfall, major chunk of finance is diverted to develop energy infrastructure that has squeezed financial streams breading cash flow jerks. 

Moreover, extreme cash flow crunch is shedding negative impacts on entire textile chain as around 30 percent working capital of textile exporters is already stuck-up in refund regime creating severe liquidity crunch and government is taking no steps for immediate payment of refund claims. Despite subsidizing the alternate fuels, government has increased import duty on coal rendering textile exporters unviable, he added. PTEA urged the government to take cognisance of serious matter and step up to save precious forex earning sector from disaster. 

Buyers remain eager for fine lint amid range-bound trading   [ top ]

Daily Times, June 26, 2015
KARACHI: Buyers remained eager for fine grades while trading remained range-bound as grade issue kept the leading buyers on sidelines, traders at the Karachi Cotton Association (KCA) said on Wednesday. 

KCA kept the spot rate intact at Rs 5,050 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.

During the trading session, buyers in Sindh and Punjab stations made deals for all grades on cautious note as grade issue slowed down buying. Traders offered all grades of lint on bargaining rates at around Rs 4,950 per maund to Rs 5,125 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.

Buyer remained cautious and only made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate, they added.

Mills in Sindh and Punjab stations bought all grades on competitive price at around Rs 4,975 per maund to Rs 5,025 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,950 per maund to Rs 4,975 per maund, traders said.

The textile sector is facing dearth of fine grades, which would be a positive sign for the cotton sector besides cotton valuation, said Shakeel Ahmad a fibre analyst.

The recent weather in cotton growing belt in Punjab remained suitable for standing crop, however severe hot weather in coming days could disturb some of standing crop. The shortage of energy to textile sector was still endangering cotton growers’ selling volumes.

Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 4,950 per maund to Rs 5,000 per maund.

More than 200 bales changed hands with more than 60 percent of Punjab’s share in trading.

New York May

2015 Futures stood at around 63 cents per pound and Cotlook A index was hovering around 69 cents per pound.