Pakistan Readymade Garments Manufacturers and Exporters
Association (PRGMEA) said that the government should waive
taxes until the stuck up claims of refunds are settled. The
Association criticized the government for delaying the release
of Rs23.42 billion under the Duty Drawback of Local Taxes and
Levies (DLTL) Scheme. The PRGMEA spokesman said the State Bank
of Pakistan has cleared only Rs 5.3 billion so far out of
total claims of Rs28.72 billion submitted by exporters until
fiscal year 2011.
The Chairman of Pakistan Cotton Ginners Association (PCGA),
Amanullah Qureshi, has welcomed an agreement signed between a
Turkish member of Board Agaglu, Atif Saeed Dada, and Federal
Minister for Professional and Technical Training, Riaz Pirzada,
for exporting cotton to Turkey, and said that this agreement
would help in stabilising prices of cotton in Pakistan because
Turkey requires at least 5 million bales cotton.
The profit after tax of Gul Ahmed Textile Mills has
increased to Rs 1.196 billion in the year ended June 30, 2011
(FY11) as compared to Rs 0.477 billion earned in FY10. The
company's earnings per share increased to Rs 18.85 in the
period under review against Rs 7.52 in the same period last
year. According to the financial results sent to Karachi Stock
Exchange, the company's sales increased to Rs 25.435 billion
in FY11 against Rs 19.688 billion in FY10. The company's
profit before taxation increased to Rs 1.537 billion in FY11
as compared to Rs 0.708 billion in FY10.
Japanese firms will invest in the upcoming
Pakistan Textile City in the Eastern Industrial Zone of Port
Qasim in Karachi. The Textile City project is aimed at
attracting maximum foreign direct investment to the country’s
textile and garment industry. The plan is to establish at
least 277 new textile and garment units in the demarcated area
for the project.
Towel Manufacturers' Association (TMA) of
Pakistan hails State Bank on reducing its policy rate of 150
basis points to 12% with immediate effect. Since July, 2001,
State Bank also reduced its policy rate by 50 bps which
yielded good results scratching inflation rate in the country
and its economy.
The decision of the State Bank of Pakistan (SBP)
to bring down the policy rate is hailed by the cotton traders
as they expect cotton trade would show improvement in the
coming days, dealers said. The Karachi Cotton Association (KCA)
official spot rate remained at last level at Rs 6,300.
During last fiscal year, textile sector did not
make borrowings for expansion / new projects, but borrowings
remained limited to working capital which was reflected in
increased exports. During July-August, the textile sector’s
borrowings fell to Rs484 billion from Rs514 billion in June
2011.
The farmers believe that only agriculture could
revive the country's economy, provided GST on the sector is
not levied. The Farmers Association of Pakistan (FAP) on
behalf of the farmers and agricultural implements
manufacturing industry has appealed to the government to
reconsider the decision on GST on agri sector.
Pakistan Denim Manufacturers and Exporters
Association (PDMEA) discussed the issue of anti-dumping duty
by Turkish government on the import of Pakistani textile
products and trade concession to 65 Pakistani textile items by
European Union (EU).
The Pakistan Hosiery Manufacturers and Exporters
Association (PHMA) has approached Prime Minister Yousuf Raza
Gilani to withdraw huge increase in water tariff by Karachi
Water and Sewerage Board (KW&SB), and appealed for uniform
tariff all over the country.
Textiles industry constitute 8.5% of the national GDP,
make up for over 5% of total market capitalization at
country’s bourses and over 40% labour force in the country is
currently being employed by this sphere, said Mian Gohar Ejaz,
Chairman All Pakistan Textile Mills Association (APTMA). He
said that out of the total $14.75 billion textile exports,
goods worth $2.5 billion currently were being dispatched to
the United States.
Pakistan is reported to have sold some more than 166,000
bales of raw cotton in export mostly to China. Peak arrivals
of seed cotton are expected in current month (November) and
heavy cotton arrivals may squeeze cotton market in late
November to December month when money market would become
tight in view of closing of calendar year 2011 and increased
load shedding of power and gas especially in Punjab.
Central Chairman Pakistan Readymade Garments Manufacturers
and Exporters Association (Prgmea) Ijaz A. Khokhar said that
if the US put in place trade restrictions with change in the
duty structure, which at this point ranging between 12% and
14% , varying according to the textile products value, and it
increases the customs levies would not be in Pakistan's
interest. He said that the US could impose trade restrictions
on Pakistan's textile export of $4 billion a year of which
home textile shared the major part.
Government of India would support the European Union’s
plan to enhance textile exports from Pakistan’s flood-hit
areas, by offering tax privileges. This was stated by Minister
of Commerce and Industry Anand Sharma during a meeting with
Pakistan’s Minister for Trade Makhdoom Amin Fahim. India was
earlier against the EU proposal because of pressure from local
textile lobby, but the direct support by the Central
government is being seen by both the countries as a step
towards improving bilateral relations.
Workers and owners of power looms observed eight-hour
token hunger strike in Manzoorabad, Faisalabad as a protest
against increasing the power tariff by 100% in three years and
recent increase of three to four rupees per unit and failure
to supply electricity regularly.
