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All Pakistan Textile Mills Association (APTMA)
President Akber Sheikh has urged the government to reduce
import duty on polyester staple fibre from the current level
of 6.5% to 0% and provide level playing field to the industry
to enable it to compete in the international market place.
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Faced with a soaring budget deficit, the
government constituted a high-level Committee to review the
economic implications of the proposed Rs.30 billion cash subsidy
package for the textile exporters. The package is designed to
subsidise consumer prices of textile and clothing products for
their sale in the markets of rich countries.
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The Sialkot-based manufacturers-cum-exporters have
demanded tax holiday for five years to establish dyeing, weaving
and processing units to increase value-added exports to $500
million from $250 million annually. They said that the
government should include their proposals in the coming budget
and the trade policy regarding development of garments industry
in Sialkot.
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The unannounced and prolonged load-shedding has
adversely affected the industrial sector and many
export-oriented units are unable to meet their foreign contracts
worth millions of dollars, said Site Association of Industry
Chairman Nisar Sheikhani. He suggested that the government
should allow private sector to import duty-free small power
generating units, which could cater the needs of small and
medium size industries, which are the worst affected.
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Research and Development is vital for the garment
sector and any reduction in 6% R&D subsidy will wipe off
Pakistan exporters globally, who are fighting for their survival
all alone, said Ijaz A. Khokhar, former Chairman Pakistan
Readymade Garments Manufacturers & Exporters Association (PRGMEA).
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The State Bank of Pakistan and Commercial banks
have provided Rs 273 billion under the Export Refinance Scheme
(ERS) to all eligible export-oriented sectors during the first
three quarters of FY08. The major beneficiary of EFS is the
textile sector, which enjoys 65% share in overall disbursement,
as a handsome amount of Rs 176 billion has been availed by this
sector at of 7.5% rate lower than ongoing 6-month.
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Pakistan Apparel Forum (PAF) has demanded that
government should allow travel and marketing allowance at 3% of
the last year's exports or devise a mechanism to share such
expenses. The budget proposals sent to Finance Ministry by the
PAF chairman Naqi Bari, contained many suggestions for the
development of apparel industry in the country.
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President of Habib Bank Ltd Zakir Mehmood has said
that the local industry was in a better position to compete in
the international market as production cost has increased by 30%
in China and India. Talking to the textile exporters, he said
that Pakistani textiles were not in a position to compete with
India and China three years ago, but now situation had changed
and export orders were expected following inflationary tendency
worldwide.
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The US port authorities have claimed $2 million
demurrage, to be paid by Pakistan textile exporters, before
release of the export consignments of any company, except 'Dean
River' who have been released foreign exchange for clearance of
the consignments paying $20,000 for each design.
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Governor State Bank of Pakistan (SBP) should
identify misuse of funds being provided under the research and
development assistance to export-oriented readymade garment
textile industry first and avoid linking entire textile
industry's irregularities with garment sector, said Chairman
Pakistan Readymade Garment Manufacturers and Exporters
Association (PRGMEA) Bilal Mulla. He rejected the statement of
Governor SBP that garment sector misused R&D funds.
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Raw cotton price touched a new peak of Rs 4,000
per maund amid rising demand of the commodity, coupled with slow
supply, said traders. They said the crop shortfall and low
supply are the chief factors behind the rising prices in the
local market, as cotton season has almost ended and most of the
mills are relying on import.
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The textile industry is working in uncertainty
because of non-availability of infrastructure and financing. The
law and order situation is also impacting textile export
business badly in Pakistan in indirect ways, said Chairman
Council of Textile Asia, Wajid Jawad
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The Chairman of All Pakistan Textile Mills
Association (APTMA), Iqbal Ebrahim, has commented on the report
attributed to the Governor State Bank of Pakistan that the
textile sector has abused the R&D support. He said that the
export of textile sector has increased from $8.564 billion to
$10.757 billion in 2006-07 as compared to 2004-05, an increase
of 25.6%.
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Muhamamd Javaid Aslam, Chairman of Pakistan
Hosiery Manufacturers Association (PHMA) (North Zone) has said
that export-oriented value-added sector is battling for its
survival in the face of stiff competition from neighbouring and
other countries in the international market and the rising costs
of doing business with a large number of industries closing
down, leading to mass unemployment of skilled and unskilled
labour including large number of female workers.
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Towel Manufacturers Association of Pakistan
President, Syed Usman Ali said that the industry was not
provided the required infrastructure such as utilities. Before
building a factor, they have to set up a power plant, water and
sewerage systems, and telephone services as well. Moreover, the
land is available at very high cost. These hurdles were making
Pakistani textile sector less competitive at the regional and
world level.
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Pakistan's knitwear industry is facing worst-ever
crisis and gradually losing share in the world market mainly due
to abolition of quota, bad law and order situation and a lack of
skilled labour and management, besides high input cost, said
Former Chairman Pakistan Readymade Garments Manufacturers and
Exporters Association (PRGMEA) Pervez Hanif.
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