The value added and basic textile sectors have mostly welcomed the first five-year textile policy recently announced by the government, but they observe that its success depends on its implementation in letter and spirit. A leading bedwear exporter and Chairman of APBUMA, Syed Muhammad Asim Shah said the duty drawback of 3% on exports for the clothing sector would help the sector overcome the impact of global recession.

He termed the reduction in refinance rate to 5% as a positive step; however, he said it was not clear whether the service charges of banks were included in the subsidy on mark-up. Over the offer of 1% additional duty drawback on 15% increase in exports he said no major exporter would benefit from that concession.

He said the 5% mark-up rebate on upgrading technology was also a positive step, but much would depend on its implementation. Rs 5.4 billion earmarked for the payment of pending claims of research and development grant would clear dues of exporters, but no timeframe had been set for the purpose.

Pakistan Powerlooms Association Secretary General Khaliq Qandeel Ansari said the results would depend on the implementation of the policy. He said some of the incentives might not yield positive results and might lead to pilferage or wastage of money like the establishment of warehouses abroad as importing countries were reluctant to even grant visa to Pakistanis and they might not allow warehouse facilities due to terror threat.

Regarding the funds allocated for the training of workers, he said the existing training institutes had not delivered desired results. The policy gave the priority to the textile industry in the supply of power and gas, but mills had received notices for a cut in gas supply in the coming winter.

He said the mills already running on 100% capacity would not be able to get 1% additional rebate on increase of 15% in exports. The fund for technology up-gradation would be wasted as it would not be possible to install new equipment in view of ongoing electricity power and gas shortages.