Fabruary
2008

 
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Apparel industry seeks Government support to avert present crisis

The crisis-ridden textile apparel industry seeks urgent Government support in order to keep it afloat amid reports that a large number of small- and medium-size units have closed down rendering a large number of workers, including women belonging to low-income group, jobless.

The industry has listed a number of factors, which have eroded viability and export competitiveness of apparel products but the Government is not taking the matter seriously.

However, the sources argued that India, China and Bangladesh were giving a number of direct and indirect subsidies to their exporters, which caused problem for Pakistani textile and clothing products to compete in the world market.

In a recent meeting with Minister of Textile Shahzada Alam Mannoo leaders of the apparel and spinning sectors apprised him about the issues with regard to high cost of doing business due to high utilities rates along with stiff competition from the rivals.

Rafiq H Godil, the chairman Pakistan Knitwear and Sweater Exporters Association (Paksea) in a statement has urged the Government to enhance the amount of Research and Development (R&D) support from 6%to 12% and it should be extended beyond July 2008 for the entire apparel industry.

He further demanded that 1% central excise duty levied since July 2007 should be included in the sales tax refund amount so that more financial space could be created for exporters.

He further asked the Government to remove import duty on all categories of cotton fabrics, accessories and felt that all procedures should be simplified.

 

 

 

 

 

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