Textile Briefs National


1.   After the government imposed a 17% sales tax on the textile sector, the owners of the processing industry called for strikes in factories and refused to cooperate with other stakeholders within the textile industry.

2.   The All Pakistan Textile Mills Association (APTMA) Chairman Syed Ali Ahsan has urged the government to end post budget uncertainty, which is impacting production, employment and exports in the country adversely.

3.   The value-added sector argues that they could not compete globally if they bought basic raw material at higher price. They claim surprise at the higher cost of yarn despite devaluation and government concessions in energy and power prices received by the basic textile industry.

4.   According to the All-Pakistan Sizing Association, the textile sector works in different phases. The association is working to understand how the imposition of 17% sales tax will impact the textile sector and others.

5.   The previous five-year Textile Policy 2014-19 was expired in June 2019. The government has, however, failed to achieve the target of doubling value-added textile exports to US$ 26 billion under the policy.

6.   According to textile experts, the main issue is the government’s lack of support in comparison to competitors like Vietnam and Bangladesh. Vietnam is 17% duty free to the US, whereas Bangladesh has the same situation as Pakistan with Europe, with the added benefit of lower wages, leaving Pakistan with little advantage.

7.   President Arif Alvi said the textile sector is the economy’s lynchpin, contributing 60% of the country’s exports and 40% of industrial employment. He told this to a delegation of the All Pakistan Textile Processing Mills Association (APTPMA) in Faisalabad. Despite tough economic conditions, he assured measures would be taken to improve the economy.

8.   The textile exports from the country during July-May 2018-19 were recorded at $12.31 billion as compared to the exports of $12.32 billion during the same period of last year, showing a nominal decrease of 0.09%, according to the latest data of Pakistan Bureau of Statistics (PBS).

9.   The Ministry of textiles has paid Rs 44.5 billion to the local textile industry under Prime Minister’s Exports Enhancement Package since July 2017, with an objective to help boost exports from the country, said a senior official in the ministry.

10.   The textile sector has not been happy lately with the decision of the government to remove the zero-rated status granted to the industry. But the government has lost patience with hoping for textile exports to record any meaningful increase.

 

 
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