Chairman APTMA Tariq Mahmood said the announcement of
Federal Budget-2009-10 is a good omen, but textile industry
demands on reduction in cost of doing business and market
access have not been addressed in accordance with the industry
aspirations. He said the announcement of Rs 40 billion as
industrial support fund does not clarify that what amount is
being earmarked for each sector.
The Economic Co-ordination Committee (ECC) of the Cabinet
is likely to approve Rs 1500 per 40-kg intervention price of
cottonseed aimed at stabilising price. During 2008-09, the
government had approved intervention price of Rs 1,550 per
40-kg in Punjab and Rs 1,465 per 40-kg in Sindh to stabilise
the price of cottonseed so that growers could get it at
reasonable rates.
The Pakistan Cotton Ginners Association (PCGA) has
rejected the summary to fix the support price of seed-cotton (phutti)
at Rs 1500 per 40 kg for the cotton season 2009-10. It has
demanded of the government to review the summary sent by
Ministry of Food & Agriculture and to fix the support price of
seed-cotton at Rs 1800 per 40 kg.
Federal Advisor on Textiles Dr Mirza Ikhtiar Baig has
requested the FBR chairman to withdraw income tax notices on
R&D subsidy issued to the value added textile sector. He said
the move would further deteriorate declining textile exports.
The exports of textile products have declined by 9.55%
during the first eleven months (July-May) of the current
financial year 2008-09, apparently due to acute energy
outages, weak security environment and tight monetary policy.
The exports of textiles group declined to $8.724 billion in
July-May period against $9.645 billion of the same period of
the last fiscal year.
The cotton shortage has reached over 3 million bales, as
there is demand of more than 14 million bales against total
production of 11.3 million bales in 2008-09. This year again,
cotton crop is well short of the local demand, which has
necessitated expensive imports of cotton said APTMA Chairman.
The government has decided to allocate Rs 70 billion
package for the revival of five export sectors in the Federal
Budget 2009-10 in the shape of reduced gas prices and
incentives for value addition, said Dr Asim Hussain, Adviser
to the Prime Minister.
The Council of All Pakistan Textile Association (CAPTA)
urged the government to revisit tax anomalies in the proposed
budget 2009-10, saying that stiff taxation will altogether
collapse the already dwindling textile industry.
The bedwear exporters have rejected the Federal
Budget-2009-010 announced by the State Minister for Finance,
saying there is nothing positive to generate employment,
increase exports and earn more foreign exchange. Shabbir
Ahmed, Chairman Bedware Exporters Association (BEA) said that
the budget speech by State Minister on Finance disappointed
the exporters as there was no positive indicator to increase
country's exports.
The value-added sector has urged the government to plead
forcefully the case of Pakistan for duty free entry of
Pakistani textile in the US market. Both the Chairmen of
Pakistan Hosiery Manufacturers Association (PHMA) and Pakistan
Sweater Exporters Association (PAKSEA) said in a press
statement that Pakistan should seek a preferential treatment
from the US due to its proactive role in war against
terrorism.
The Chairman, Pakistan Apparel Forum (PAF), Javed Bilwani
criticised the US for not including Pakistan in the list of
textile exporting countries, to which its legislator has
recently proposed a duty free access to the US markets. He
said that Pakistan being the South Asian strategic partner in
pre and post cold war and also the US non-Nato ally has been
overlooked for a duty free access despite combating the global
terror from the frontline.
The US Ambassador to Pakistan ruled out the possibility of
giving Pakistani exporters duty-free access to the American
market. Speaking at the inauguration ceremony of new
secretariat of American Business Council in Karachi, Anne W
Patterson said it was not possible under the current economic
conditions.
Cotton brokers have urged the government for resumption of
'Hedge Trading' with immediate effect to safeguard the
interests of all segments of cotton economy. Muhammad Naseem
Usman, Chairman of Karachi Cotton Brokers Forum, said that if
the government would not resume the hedge trading this year,
brokers would start it themselves from next cotton season.
The Punjab agriculture department has asked all the
District Officers (DO) to devise a cotton crop management plan
in line with the prevalent situation to save the crop, which
at present is at different growth stages and confronting
problems of sucking pests and armyworm.
The government has allocated an amount of Rs.509.746
million for various ongoing schemes of Textile Industry
Division, under the Public Sector Development Programme (PSDP)
2009 10. According to budgetary allocations, Rs.246 million
have been earmarked for providing and laying dedicated 48 inch
diameter mild steel water pipeline for Textile City Karachi
whereas Rs. 207 million have been allocated for Faisalabad
Garment City Project. The government under PSDP allocated
Rs.25 million for Lahore Garment City Project and Rs 17.33 for
up gradation of EDF Funded Textile Institutes.
