Federal Minister for Textile Industry Rana Muhammad Farooq
Saeed Khan said that the new textile policy is focusing on the
resolution of problems being faced by the sector. The
government has announced Rs 40 billion Export Support
Development Fund for the textile sector as an incentive to
promote textile industry for the benefit of the country.
A sizable amount of custom duty has been collected from
the textile related imports during 2007-08. This is a visible
improvement, as there was negative net revenue collection of
about Rs. 4 billon in 2004-05, which has gradually changed
into positive during FY: 2006-07 and onwards. Therefore, the
effective rate which was negative during 2004-05 and 2005-06
both with total and dutiable imports as well, has started
improving to 1.7% and 4.6% respectively.
Textile exporters could bring $25 billion from exports in
next two years and $120 billion in next 10 years, if they are
provided level playing field. This was claimed by the FPCCI
Chairman, Azhar Majeed Sheikh in the Standing Committee on
export trade.
Cotton production remained 2.7 million bales below the
government's target of 14.1 million bales during the outgoing
fiscal on account of non-supply of better quality seed, short
supply of quality inputs and insufficient water supply.
Pakistan Central Cotton Committee, keeping in view the
situation, had revised the target to the level of 12.5 million
bales in 2008-09, but the production was less than the revised
target.
Federal Textile Adviser Mirza Ikhtiar Baig said that
Pakistan’s exports to the European Union may increase
three-fold, if Pakistan is offered duty-free status. He said
according to a study most of the countries exporting to the EU
are given treatment under the Generalised System of
Preferences (GSP). The GSP offers a slightly lower rate of
duty than the regular duty.
The carpet industry business is worth US $150 million per
annum. This trade mostly concentrated in the NWFP, accounts
for 70% locally made products and the rest come from
neighbouring Afghanistan, as stated by the members of a
delegation of the Pakistan Hand Knitted Woolen Carpet
Exporters, which called on the NWFP Governor Owais Ahmad Ghani.
All Pakistan Textile Mills Association (APTMA) has reacted
strongly to the government decision of disconnecting gas
supply to textile industry from 9th July to 20th July 2009,
leading to decline in production and exports already tumbled
to 30% in quantity terms and 35% closure of production
capacity.
The Export Processing Zone Authority (EPZA) will set up an
export zone at Sukkur in collaboration with the Sindh Ministry
of Industries to facilitate export of textiles, dates, rice,
fruits and vegetables.
Powerful US business companies and chambers, led by
American Apparel and Footwear Association, have urged Congress
to revamp the Reconstruction Opportunity Zones (ROZs)
programme for Pakistan and Afghanistan and extend duty-free
treatment to all textile and apparel products.
Pakistan Readymade Garments Manufacturers and Exporters
Association (PRGMEA) have sought government functionary’s
intervention for removal of budget irritants confronting
textile industry by spurring the cost of doing business.
Federal Minister for Food and Agriculture Nazar Muhamad
Gondal said that government would intervene if farmers were
not paid the fixed procurement price for their cotton crop.
The government would procure cotton from the farmers if they
were not given right prices by the local buyers.
Council of All Pakistan Textile Associations (CAPTA) has
urged the Federal Board of Revenue (FBR) to refrain from
tarnishing the image of textile sector through misleading
assumptions, raising serious apprehensions over the bleak
picture, painted by FBR on Textile Industry of Pakistan in its
quarterly review of Jan-Mar 2009 released on July 01, 2009.
Government has declared year 2009 as the year of
industrial revival, but Federal Budget 2009-10 did not spell
out any detailed plan to revive industrial sector including
textile industry. The government should work out a special
package for the quick revival of textile industry, which was
the backbone of exports, said Main Shaukat Masud, President,
Islamabad Chamber of Commerce & Industry (ICCI).
The Textile industry had reached the brink of disaster as
a result of forced load shedding of electricity and the recent
hike in the prices of Petroleum products. The recent price
hike in Petroleum products would escalate the cost of doing
business and would push the Textile Industry to the verge of
total collapse, said Chairman Pakistan Textile Exporters
Association Muhammad Yousaf and Vice Chairman Rehan Naseem
Bharara.
Federal Adviser on Textiles Dr Mirza Ikhtiar Baig said 67%
of the export investment support fund would be spent on
textile and clothing industry with a view to moving the sector
towards consolidation and value addition. In this budget
Federal Excise Duty (FED) on the import and supply of viscose
staple fibre is withdrawn and zero tax on exports of textile
and clothing items to be made zero-rated in true sense. The
government plans to give enhanced duty drawback to the
value-added textile exporters in lieu of research and
development support.
Federal Advisor on Textiles Dr Mirza Ikhtiar Baig said
that Chairman FBR has accepted his request for allowing the
Sales Tax Collectorate to entertain the existing DTRE
applications till the new arrangements are finalized and
required staff is provided to the Custom Export Collectorate
to avoid the anticipated delay in DTRE approvals.
