Mian Zahid Aslam, Chairman Pakistan Textile Exporters
Association (PTEA) said that the Pakistani textiles were
rendered incompetitive in the international market because the
prices of Pakistani products in international market were higher
as compared to the rival countries like India, China and
Bangladesh. Accordingly the foreign buyers diverted their orders
towards these rival countries.
Pakistan’s trade deficit went up sharply to $3.6 billion
during July-September 2007-08, which was about 13.5% higher
than $3.17 billion in the corresponding period of the last
fiscal, according to the data released by the Federal Bureau
of Statistics (FBS).
Cotton export from Pakistan has surged by 47% in
July-September 2007 as compared to the same period last year.
In the international market, Pakistani cotton is getting more
attraction due to higher quality from the traditional and
non-traditional cotton importing countries, said Senior Trader
Ghulam Rabbani.
Pakistan will try to attract global manufacturers of
shuttleless textile machines through the proposed 10 year tax
holiday to encourage them to set-up manufacturing units in
Pakistan. The proposed initiatives of the Government would
result in increase in textile exports by enhancing the
production capability of the textile sector.
Prime Minister Shaukat Aziz said that the establishment of
Special Economic Zones (SEZs) would help promote
industrialisation, enhance Pakistan’s competitiveness,
generate employment and reduce poverty in the country.
Pakistan has lost market of more than $6 million during
last calendar year due to high cost and low quality of textile
products in Japan, said Seiji Kojima, Ambassador of Japan,
while addressing business leaders at Rawalpindi Chamber of
Commerce and Industry (RCCI).
Fulfilling a major demand of All Pakistan Textile Mills
Association (APTMA), the Federal Board of Revenue (FBR) has
enhanced duty drawback on export of viscose staple fibre yarn,
acrylic staple fibre yarn, 100% polyester staple fibre yarn
and other textile products from September 17, 2007.
Federal Minister for Food Agriculture & Livestock Sikander
Hayat Bosan has said the country will achieve the cotton
production target of 14 million bales despite mealy bug and
cotton leaf curl virus (CLCV) attack. Though 0.1 million acres
area of cotton crop has been affected by mealy bug and CLCV,
blooming hopes and strong anticipation are still there that
the country will achieve the production target.
Big textile companies — more than two dozen that spin
yarn, weave fabric and are in manufacture of home textile —
are actively involved in negotiations with the bankers to get
their credit issues quickly resolved amicably in anticipation
of a record bumper cotton crop of 14 million bales and to gear
up for Christmas and New Year demand from Europe and USA.
The Government is exploring to acquire biotechnology from
Chinese companies for developing virus-cum-pest-resistant
genetically-modified cottonseeds, and the officials of the
Ministry of Agriculture are said to be in negotiations with
few such firms. Also involved in negotiations with the
agriculture ministry is an American multinational firm
Monsanto, having its offices in Lahore.
The Towel Manufacturers Association (TMA) has urged the
State Bank to rescue exporters affected by sudden wrap up of
the Long Term Financing Scheme (LTFS) in the latest trade
policy. The plea was made by TMA Chairman Syed Muzammil
Hussain in a meeting with In-charge of LTFS at the SBP Head
Office.
The Federal Board of Revenue (FBR) has increased the rate
of income tax from 1% to 1.5% on ginners from the current
cotton season, and has asked the Tax Managers to collect the
tax at the revised rate. Pakistan Cotton Ginners Association (PCGA)
Chairman Suhail Mehmood Haral has strongly condemned the
revision of rate on income tax on the ginneries, describing it
harmful to the interests of the ginning industry.
The Central Board of Revenue (CBR) enhanced the duty
drawback rates on the export of majority of textile products
included carpets, polyester staple yarn products and blankets.
The Ministry of Food, Agriculture and Livestock (MINFAL)
is opposed to import of short-staple cotton because this would
cause financial loss to growers by bringing down cotton prices
in the local market.
The Economic Coordination Committee (ECC) of the Cabinet
has directed the Federal Board of Revenue (FBR) not to put up
any textile-related issue without prior consultation with the
Ministry of Textile Industry.
Banks have assured the textile industry to give serious
thought to its proposal of two-year moratorium on payment of
outstanding loans. However such an action could be on
case-to-case basis instead of extending it to the whole
sector.
A delegation of All Pakistan Textile Association (APTA),
led by its Chairman, Adil Mahmood, held a meeting with the
Presidents of various banks and other senior bankers recently
to appraise them of the current situation in the textile
spinning sector.
More than 5 million bales of cotton this season -about 30%
to 40% of expected 14 to 15 million bales cotton output this
autumn - is being obtained from the sowing of genetically
modified seeds, which are either being smuggled from India or
trans-shipped from Australia via Dubai or Hong Kong as a mis-declared
item.
