The Pakistan government on Wednesday (12th May) imposed a 15% regulatory duty on exports of all types of yarn after strikes broke out earlier this week over a yarn shortage in the country’s local markets.

The duty will be effective immediately for a provisional period of 60 days, while quota restrictions on yarn exports will be withdrawn.

The move comes after strikes and widespread protest rallies by the value-added textile sector that continued for a second consecutive day yesterday (12th May) in Faisalabad and Karachi, against the shortage of cotton yarns in the domestic market.

Chairman of the Pakistan Textile Exporters Association (PTEA) Khurram Mukhtar said that due to scarcity and non-availability of cotton yarn in domestic markets, millions of dollars worth of value-added textile products may not be made.

But Gohar Ejaz, chairman of the All Pakistan Textile Mills Association (APTMA) told just-style that the duty is against the free market mechanism and would disturb production and trade across the textile industry's entire value chain.