KARACHI, April 22: Commerce Minister Abdul Razak Dawood on Monday disclosed that policy for the remaining 10 per cent balance of European Union’s enhanced quota textile will be announced on Tuesday.

The minister, who was reluctant to give details of the policy, said that in his personal view the distribution and allocation of this quota should be on the basis of value addition than any other criterion.

Speaking as a chief guest at the Pakistan Readymade Garments Manufacturers and Exporters Association’s (PRGMEA) 4th Export Excellence Awards distribution ceremony, Razak Dawood stressed upon the need to move higher in value addition of textile.

However, he said “let us see what is going to be unfolded at 12 o’clock on Tuesday, as presently the Ministry of Commerce officials are giving final touches to the policy.”

The European Union had given 15 per cent additional quota to Pakistan textiles, out of which the Export Promotion Bureau had already auctioned 5 per cent quota.

Agreeing with a point raised by central chairman of PRGMEA, Masood Naqi in his address of welcome, the minister said more attention was needed towards value addition and the garment industry was perhaps one of the best way out for achieving this goal.

Referring to a point that no notification had been issued so far for the formation of apparel board, the minister said there was no need of getting official approval and “we could sit together in the first week of next month and discuss all issues confronting the garment industry”.

He said such forum’s dedication and will was more important rather than official notification and in “our first meeting (in the first week of May) all issues relating to sales tax, rebate and tariff would be taken up so as to accommodate these suggestions in the next budget”.

Expressing satisfaction over the progress achieved under ‘Textile Vision 2005’ particularly towards value addition, Dawood said “our movement towards value addition has started at a better pace”.

He said there had been 32 per cent value addition in textiles, which increased to 52 per cent last year and it was presently at 57 per cent. Similarly, the minister said last year exports of readymade garments was at $825 million, and this year it grew to $873 per cent that indicates a 5-per cent rise.

On contamination-free cotton, he said there had been 26 grams per bales which had now come down to 4 per cent in bad cotton growing areas.

Mr. Dawood said that he did not subscribed to the idea that textile industry needed tariff protection and was of the view that it needed minimum protection.

The minister has expressed satisfaction with the progress of the textile industry and said today all sort of bans on textile imports had been removed. There could be free import of yarn and fabrics which could give impetus to further value addition.

Meanwhile, Abdul Razak distributed export excellence awards to PRGMEA’s top ten exporters and top ten value added exporters.

The recipients of these awards included: US Apparel, Rajby Industries, Ali Murtaza Associates, The Crescent Textile, Joe’s Fashion Exports, Abdullah Apparels, Talon Sports, Al-Karam, A H International and Zainab Stores for being best exporters.

Top ten value added exporters included: Fareena Textile, Pakistan Emporiu, Milton Exports, JMS Trading, Gats Apparel, Century Apparel, M&M Corporation, Mehran Industries, Milton Exports and Parsons Holding.

Contributions Privacy Policy © DAWN Group of Newspapers, 2005