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Textile Briefs National
Textile Industry Minister Mushtaq Ali Cheema has said that the decision on duty-free import of textile accessories will be taken after reviewing the proposals of the local manufacturers. In a meeting with textile accessories manufacturers at Faisalabad, the Minister said that the Government would not hurt the local industry while taking any decisions for the revival of textile sector.
Chairman, North Karachi Association of Trade and Industry (NKATI), Faraz Mirza, has said that textile manufacturers need to be at par with competitors, like India, China and Bangladesh, by getting tax concessions, cheap and easy bank loans, less expensive and subsidised and constant supply of utilities to permit the textile sector to be competitive in world markets.
Former Speaker of National Assembly Syed Fakhar Imam has stressed the need for evolving high yielding cotton varieties, having resistance against cotton leaf curl virus (CLCV) and bollworms to keep the country’s cotton economy booming. He said cotton production showed upward trend in India and China, and added that high yielding varieties were the need of the hour to fulfil domestic requirements that would save the country from importing cotton from abroad.
The Central Board of Revenue has announced that textile exporters, who have missed their export targets, can now pay just 5% duty on textile machinery imported under the incentive scheme enforced in 1998.
The State Bank of Pakistan has so far disbursed over Rs15.42 billion as Research and Development (R&D) support against 163,000 claims to the exporters of garments, home textiles, fabrics and leather footwear. Of this amount, Rs7.94 billion was released to exporters in Karachi, Rs3.57 billion in Lahore and Rs3.01 billion in Faisalabad and the remaining amount to exporters of other cities.
The Federal Government has asked for Provincial governments’ comments in connection with preparation of a long-term strategy for increasing cotton production. The Ministry of Food, Agriculture and Livestock (MINFAL) has fixed the 2007-08 cotton output targets close to 14.6 million bales-a record cotton output achieved in 2004-05.
Bedwear exports have continuously been falling for the last three months (December to February) amid tough competition emerging from the newly-inducted members to the European Union (EU) belonging to former East European bloc, said chairman, Pakistan Bedwear Exporters Association (PBEA), Shabir Ahmed.
The textile sector has observed 6% growth in its exports in first eight months of current fiscal. The total export of textile group from July 2006 to February 2007 amounted to $7.006 billion in comparison with $6.609 billion export of the said sector in the same period last fiscal. The paltry increase was noted in the exports of tents, canvas and tarpaulin.
Pakistan textile sector loses its competitive edge as its regional competitors like China, India and even Bangladesh enjoy more incentives, according to presentation made by a Swiss consultant Udo Hartman Director Gherzi Textile Organisation of Zurich.
v Prime Minister Shaukat Aziz has approved and has directed the implementation of the Export Plan Pakistan for textile and clothing sectors aimed at increasing textile exports from $9.8 billion to $22-$25 billion during 2006-2013.
Chairman National Assembly Standing Committee on Textile Chaudhry Nazir Ahmad Jatt stressed on the Committee to resolve the textile crisis with its own efforts and avoid constituting Sub-committees. He was presiding over a meeting of All Pakistan Textile Manufacturers Association (APTMA) at Lahore.
After the advent of WTO regime, the APTMA meeting observed, India established textile chain stores in foreign countries to boost their exports and the Government of Pakistan should also take similar steps to protect its exports and interests.
The exports will improve with Annual Compound Growth Rate (ACGR) percentages under the Export Plan for Pakistan 2006-2013. The textile and garment sector’s exports are projected to increase from $9.98 billion in the fiscal year 2006 to $24.36 billion by fiscal year 2013 with ACGR 14% per annum.
Pakistan and the European Union (EU) have decided to set up a joint commission under the third-generation agreement — a trade plus treaty — to discuss market access issues for enhancing trade, said Commerce Minister Humayun Akhtar Khan.
The Board of Administrators of Export Development Fund (EDF) approved Rs207.3 million for various on-going schemes to promote exports. The Board also approved Rs5 million to conduct a research on trade potential in adjoining countries and Central Asian Republics (CARs) to help identify the exportable products, and suggest ways on how to increase exports to these countries.
The National Assembly Standing Committee on Textile Industry, taking serious notice of the recent increase in electricity price by 10%, directed the Water and Power Development Authority (WAPDA) to exempt the textile sector from it, as this sector is already in crisis.
The World Bank cautioned Pakistan against “too high” trade deficit and asked to control it for sustainable long-term economic growth. The WB Country Director John Wall said that though trade deficit in economy is considered a good sign as it indicates rapid economic growth in any country, however, in case of Pakistan it is very large and require immediate attention so that the existing level of progress should continue.
All Pakistan Textile Mills Association (APTMA) has expressed anguish at the announcement of a 10% hike in electricity power tariff. APTMA’S spokesman highlighted the fact that approximately 60% of the textile industry is dependent on electricity.
