May 23, 2002	Thursday	Rabi-ul-Awwal 10,1423

KARACHI, May 22: In an unexpected development the arch rivals — spinners and textile ancillary industry leaders — on Wednesday resolved to formulate a joint strategy for addressing the problems of textile industry and promoting its production and exports.

The occasion was a luncheon meeting called by Aptma chairman Nadeem Maqbool for all the heads of ancillary industry’s trade bodies at the Aptma House.

In all 21 representatives and heads of ancillary textile industry, including Council of Textile Associations (CTA) chairman Wajid Jawad, Quota Supervisory Council chairman Aziz Memon and Aptma vice-chairman Mushtaq Vohra participated in the meeting, which was called without any agenda on record.

However, as the luncheon meeting progressed the mood of participants also took a change for better and at one stage it seemed that both the sides have never been poles a part in defending their conflicting interests, a participant told Dawn after coming out of the meeting.

Perhaps it was for the first time such a pleasant development took place when the participants from both the sides agreed to jointly present before the government the major problems faced by the industry for their expeditious resolution.

The textile entrepreneurs inter alia expressed grave concern over the deteriorating law and order situation in the country and the growing tension at the Indo-Pak border and assured the government of industry’s complete support in the hour of need.

The meeting impressed upon the government to redress the major problems of the textile industry failing which the industry would not be able to sustain itself against ever-increasing global competition.

The participants identified four major problems presently confronting the textile industry and need urgent government attention for their resolution.

It was pointed out that inordinate delay in refund of sales tax on zero-rated exports was identified as the single most factor retarding the growth of the textile industry and its exports. It was resolved to request the government to reduce the rate of GST to 5 per cent.

Participants, however, were keen to impress upon the government to ensure that all sales tax refund claims filed up to June 15, 2002, are positively released before June 30, 2002.

The industry was of the common view that unless contamination-free cotton is available, value-added textiles cannot be produced and exported. The members decided to support all efforts of the government for production of 100 per cent clean cotton.

It was strongly demanded that the government should contain tariff rates of utilities by controlling the exorbitant line losses and rampant corruption in the public utility companies. They pointed out that higher tariff rates of electricity and gas was the major problem, affecting the textile industry.

Similarly, the participants urged the government to increase duty drawback rates on blended fabrics and apparels.