The National Assembly Standing Committee on Commerce
observed that the textile industry was suffering losses due to
its inefficiencies and not because of the World Trade
Organisation (WTO) regime. The Committee members noted that
not enough had been invested in the infrastructure and the
development of human resources by the managements of the
textile units and expressed dissatisfaction over the
performance and preparations of the textile sector to meet WTO
challenges.
All Pakistan Textile Mills Association Chairman Ejaz Gohar
said that investment in the textile industry almost dried up
in the past three years. This is an appropriate time to
increase spinning capacity to meet expected high demand of
Pakistani yarn in the global market.
The State Bank of Pakistan (SBP) has expressed inability
to convert textile sector loans into long-term financing
facility (LTFF) on the basis of an agreement between the GoP
and the International Monetary Fund. This was crux of the
meeting between State Bank of Pakistan (SBP) Governor Salim
Raza and Advisor on Textile, Dr Mirza Ikhtiar Baig.
Trade Development Authority of Pakistan (TDAP) has
registered the set cotton yarn export quota of 50,000 tonnes a
month until April this year. According to TDAP officials, a
partial amount of cotton yarn export until June this year has
also been registered, showing an immense global demand for the
commodity. With the high demand of cotton in the world the
authority has registered the 50,000-tonnes yarn quota of each
February and March 2010.
Seed-cotton arrival figures indicate that finally cotton
crop (2009-10 season) may hardly touch the level of 12.8
million running bales and may finish some where between
12.7-12.8 million bales against 11.34 million running bales in
2008-09 season - an increase of about 12.5% over last season.
According to the Federal Bureau of Statistics (FBS) data,
all textile and made-ups exports have increased to $5.946
billion in the first seven months (July-January) of current
financial year against $5.814 billion of the same period of
previous year, thus showing an increased of 2.27%.
Sources of Agriculture Ministry said that cotton growers
in Pakistan may get Bt cottonseed indigenously developed for
commercial sowing from 2010-11 season. Field results of Bt
cotton on experimental or commercial basis have shown very
promising results and the growers are increasingly interested
in sowing Bt cotton through the country.
The dispute between two segments of textile sector,
spinners and value-added sector is still going on the issue of
cotton yarn availability in the country.
Value-added sector associations blamed All Pakistan
Textile Mills Association (APTMA) for exporting more than the
quota, which has also been endorsed by the figures of
government on cotton yarn export.
The Ministry of Textile Industry has asked Pakistan
customs to allow export of value-added cotton yarn on the
basis of Trade Development Authority of Pakistan (TDAP)
registration and accredited laboratory report. Earlier, the
Ministry of Textile assured that monthly cotton yarn export
would be capped on 38 million kilogram per month, but the
promised was not fulfilled and Ministry caped the export at 50
million kilogram per month,.
Due to shortfall of around 3 million cotton bales the
textile sector will have to bear an import cost of around Rs
80 billion, said a senior trader at KCA, Shakeel Ahmad. He
said buyers remained eager for fine lint even on higher price
above Rs 5,300 per maund during the trading session.
Pakistan Hosiery Manufacturers Association former Chairman
Adil Butt said instead of bickering over high yarn prices the
clothing exporters should press foreign buyers to offer better
prices. Butt said no reasonable buyer would refuse to adjust
prices in accordance with the increase in yarn rates which was
a global phenomenon.
Chairman of Pakistan Apparel Forum, a representative body
of four value-added exporters’ associations Jawed Bilwani said
that due to scarcity of yarn in the domestic market the export
of most of the value-added textile goods declined during the
first 7 months of the current fiscal. He further said that
according to official figures exports of fabric during
July-January declined by 23.5%, readymade garments 11% and
hosiery goods by 10 % when compared to the same period last
year.
National Project Manager, Gender Promotion (Gen-Prom),
Punjab, Sajeel Butt, said that the UNDP-led training programme
for the readymade garments sector has generated fresh jobs for
4,500 workers, women are in majority, by providing them
skilled training in the last three years.
Rasheed-ud-din Rashid, Senior Vice President of Karachi
Chamber of Commerce and Industry (KCCI) has asked Federal
Secretary Commerce to recommend Federal Finance Ministry to
give some relief to the textile sector in the form of
exemptions from heavy burden of taxes.
Exporters of value-added textile goods face severe
liquidity crunch due to non-fulfilment of assurances of
benefits and relief package announced in the textile policy
last year, said Shabir Ahmed, chairman Pakistan Bedwear
Exporters Association (PBEA). He said exports of most of
value-added textile goods are declining and our competitors
are capturing our share in the world market but there seems to
be no realisation or any sort of concern amongst the
policymakers.
