1. The government
has announced the country's biggest export package worth Rs 180
billion to enhance foreign trade. The package envisages
abolition of customs duty and sales tax on import of cotton.
Similarly, customs duty on man-made fibre rather than polyester
and sales tax on import of textile machinery has also been
2. The Federal
Board of Revenue (FBR) has exempted sales tax on the import of
machinery (not manufactured locally) by textile units registered
with the Ministry of Textile Industry from January 16, 2017 till
June 30, 2018.
to Chairman APTMA, Aamir Fayyaz, the textile industry has not
sufficiently invested in balancing and modernisation and the
situation in 2016 has further deteriorated. The eroding
competitiveness of the sector was not only because of high cost
of doing business in Pakistan but also due to 10 years old
machinery. He said the older machines consume 40% more power
than the latest basic textile machines.
4. State Bank
of Pakistan (SBP) Governor Arshad Wathra reiterated the
government’s resolve to revive the textile industry and pledged
unequivocal support for all the stakeholders. He has asked the
representatives of the banking sector to play their due role in
rehabilitating the textile industry by extending loans to the
5. The TDAP
Chairman has said that the decline in exports from Pakistan is
due to global recession. He said last year Pakistan's exports
declined by 14% while there was a dip of 18% in Indian and 12%
in Chinese exports.
Manufacturers Association of Pakistan delegation presented a
working paper to the governor based on points for revival of the
textile industry and assured the Governor that if their
proposals are given due weight age, they can assure that the
country's exports will increase manifold which will ultimately
help the exporters to come out from the crises which they are
facing since long as well as it will help the government in
increasing foreign reserves which is badly needed for the
has missed the cotton production target by around 25 per cent as
the production has been recorded at 10.5 million bales against
the set target of 14.1 million bales for 2016-17. So far 10.5
million bales of cotton have been recorded.
Jawed Bilwani, chairman of Pakistan Apparel Forum demanded
release of long pending refunds of exporters from the
government. According to Bilwani, exports of knitwear dropped
3.44 per cent, garments fell 3.60 per cent and of all other
textile products decreased 1.30 per cent in January 2017, as
against January 2016.