June 2008

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Textile Briefs National

 

v     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.

v     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.

v     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.

v     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.

v     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).

v     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. 

v     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.

v     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.

v     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.

v     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.

v     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.

v     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

v     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%.

v     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.

v     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.

v     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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