November 2008

 
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Textile Briefs National


v                 Leading industrialist and Deputy Co-ordinator of People's Business Forum, Dr Mirza Ikhtiar Baig has been appointed as Advisor to Prime Minister on Ministry of Textile to focus on this major exports sector of the country.

v                 All Pakistan Textile Mills Association (APTMA) appealed to the Prime Minister and Head of Winter Load Management Committee to ensure gas availability for the textile mills in Punjab during winter season, otherwise it would be difficult to continue mills’ operations

v                 Pakistan Cotton Ginners Association (PCGA) has decided to export the ginned cotton to come out of the crisis because textile cartel was not purchasing the cotton from the ginneries to bring the rates at the lowest ebb

v                 Pakistan may increase production capability of its textile industries by up to 20% with little effort, which will help increase exports of the apparel industry, said Fayyaz Ahmed Riaz, DGM Small and Medium Enterprise Development Authority (SMEDA).

v                 Sindh Minister for Commerce and Industries Rauf Siddiqui has hope that no further enhancement will be made in its current tariff by Karachi Electric Supply Company (KESC), nor will it issue any disconnection orders for non-payment of bills. This was disclosed by acting Chairman of All Pakistan Textile Processing Mills Association (APTPMA) Mian Ajmal Farooq.

v                 Chairman All Pakistan Textile Mills Association (APTMA) Muhammad Iqbal Ebrahim has said that due to unprecedented 60% increase in electricity tariff, the entire textile industry based on PEPCO/KESC would become unviable,closing down 150 textile units and leaving 100,000 workers unemployed, affecting 600,000 family members. He also said that due to high power tariff, business activity worth Rs100 billion would be suspended and there would be a decrease in direct and indirect exports of about $1 billion and a loss in government revenue of about Rs700 billion.

v                 Pakistan's garment export to European Union and Canada registered a decline while to the US market, the garment export posted a slight increase, an IMF report revealed. The garment export to EU market declined from 1.7% in 2003 to 1.5% in 2007.

v                 The Ministry of Industries and Production has proposed zero-rating of sales tax on supply of construction material to the Gwadar Export Processing Zone and its investors for development of infrastructure. The proposal was submitted in the first meeting of the committee constituted by the ECC on package of incentives for the Export Processing Zone.

v                 The present government has not taken comprehensive measures so far to revive the status of its business community abroad, as the community has been facing severe problems in dealing with their counterparts in the western world since 9/11 incident, in particular, as it has left adverse affects on the country's exports and trade. Speakers expressed these views during a one-day workshop on "Evolving Paradigms in Pakistan's Garment Industry," which was organised by Small Medium Enterprises Development Authority (SMEDA).

v                 Turkish government has shown interest to transfer its textile-related technology to Pakistan, as Turkey has realised the importance of the sector, mainly because of cheap labour, said Director General, Trade Development Authority (TDA) of Pakistan, Sarfraz Ahmed, this while addressing the 103 participants of Pakistan Business Forum (PBF), who will participate in six- day the International Trade Fair and International Business Forum being held in Turkey on October 21, 2008.

v                 Allahdin Group of Companies has introduced a new variety of cotton, "Bt-A One."  Company Director said that the main drawback in all the existing Bt cotton varieties is that they drop their bolls during the severe heat whereas the process to drop its bolls in this variety is almost zero.

v                 To meet the level of global competitiveness effectively and efficiently, the creation of SEZs in Pakistan has become an acute necessity to promote trade and investment. The government will establish a powerful body headed by the Prime Minister, which will grant special economic zone (SEZ) status to all new and existing zones. The decision is a part of the SEZ policy framework formally approved by the Economic Coordination Committee (ECC).

v                 Owing to considerable share of energy in total operating cost and anticipated higher cost of energy, Pakistan’s textile sector faces significant challenges in local as well as international markets. This was stated by speakers at a ceremony held by the All Pakistan Textile Mills Association (APTMA) in collaboration with GTZ (German Technical Cooperation) and SMEDA.

v                 The ever-rising cost of doing business in Pakistan and power crisis are badly affecting country's industry in general and textile sector in particular, said S M Naveed textile industrialist. He said high inflation, decline in growth, fiscal deficit and widening of trade gap and current account deficit have left the economy in bad shape.

v                 All Pakistan Textile Mills Association (APTMA) launched the Energy Management System Programme for the textile. Under the Energy Management System Implementation Programme, energy managers of a set of member mills representing spinning, weaving and composite units will have extended and extensive class room and hands on training spanning between 5 and 6 months.

v                 Ministry of Food, Agriculture and Livestock (MINFAL) has submitted a summary of crops to Prime Minister and informed him that the country may face a shortfall of around 2 million cotton bales during crop season 2008-09 and  country would be able to achieve 13 million bales this season, said Minister for Minfal, Nazar Muhammad Gondal.


 
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