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Cotton yarn trading: Aptma resents SECP
permission to NCEL
KARACHI (April 01 2004): The All Pakistan Textile
Mills Association (Aptma) has regretted that the
National Commodity Exchange Limited (NCEL) is
being allowed to initiate trading in cotton yarn
along with gold.
Aptma Chairman Waqar Monnoo, in a letter to the
Chairman, Securities Commission of Pakistan (SECP),
Dr Tariq Hasan, referred to his statement, arguing
that the inclusion of cotton yarn futures had been
made in response to the demands from the
stakeholders.
Monnoo said: "This is all the more surprising
because the Aptma is the only body representing
the spinning mills in the country and our views
have certainly not been sought in this regard.
"Neither the SECP nor the NECL has ever approached
us to discuss the merits, demerits or the
implications of starting futures trading in yarn.
"In our view, no unilateral decision can be
acceptable to the Aptma," he said.
Monnoo said that the NCEL had no expertise in this
regard and to entrust them with yarn trading would
not bode well for the textile industry.
"Textile is a very important part of Pakistan's
economy, which contributes heavily in terms of
employment, exchequer and exports," he said.
The Aptma chief said he himself had no knowledge
of the NCEL, its operations or capabilities and
certainly would not want them to indulge in our
primary manufacturing items without consulting the
Aptma and all the other relevant stakeholders, who
had an inherent and vested interest in the
industry.
He questioned that if at all there should be yarn
futures, why should the NCEL start futures trading
and "we should explore other institutions who may
be more capable to undertake this task."
The Aptma Chairman strongly opposed this
unilateral decision, taken by the SECP, and
suggested to debate this issue with the Aptma so
that a thorough study could be undertaken on the
implications of yarn futures trading.
He also requested that any study on the
implications, which had been carried out by the
SECP/NCEL, might be provided to the Aptma for its
comments.
He also invited Dr Tariq Hasan to visit the Aptma
to have an opportunity to hear the views of the
textile industry.
Courtesy Business Recorder |
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Pakissan.com; Advisory Point
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