KARACHI, Feb 16: The textile ancillary industry is seeking a minimum of 20 per cent shares in relief package to counter the current galloping cost of production which has almost rendered the entire value-added textiles un competitive in the world market.

Faced with tough competition from other countries, which are not only providing subsidies to their industries, but also have lower cost of production because of lesser tariffs in major inputs like power, water and labour, Pakistani exporters are fast losing share in major markets of the world.

"A front-line state in the war against terrorism, Pakistan is being treated step-motherly by its own allies, and the worst example is that it was removed from the Generalized Scheme of Preferences (GSP) by the European Union," lamented Aslam Ahmed Karsaz, Chairman of the Pakistan Hosiery Manufacturers Association (PHMA).

He said: "When our competitors from countries like India, China, Bangladesh and Sri Lanka are getting every kind of facilities, subsidies and rebates, our exporters are heavily burdened with exorbitant electricity and gas charges."

Mr Karsaz does not agree with a general notion that the country's labour is cheap, because when its productivity is taken into consideration the same becomes much expensive, resulting in higher cost of production.

The PHMA chief said that as per the World Bank study power played a major role in the cost of product. According to the study, power rates in China were zero and in India they were 0.9 cents per unit, while in Pakistan they were 8.3 cents per unit. "One could easily judge the reason for higher cost of production in Pakistan", Mr Karsaz adds.

"Time and gain our commerce minister and even the prime minister have promised to provide our exporters a level-playing field, but they have failed to do so even after the beginning of WTO quota-free era," he observed.

Anis Marfani, Chairman of the Pakistan Sweaters Exporters Association, told Dawn that Pakistan, despite having a 12-per cent duty relief under the EU's GSP, was also no more there and had to pay this duty, whereas countries like Bangladesh and Sri Lanka are exempted from the duty.

"When other countries of the world are offering subsidies to their exporters, we fail to understand as to why our government cannot offer the same under an agreement with the World Bank." He said that India was generously giving subsidy under the export plus scheme to its exporters.

Dawood Usman Jakora, Chairman of the Pakistan Readymade Garments and Exporters Association, said that owing to huge losses and lack of export orders a large number of units were facing closure, rendering thousands of workers unemployed.

He demanded that at least 20 per cent relief package in the form of subsidy or rebate should be announced if the government wanted to see any meaningful results to save the industry.

SMA Rizvi, patron-in-chief of the Towel Manufacturers Association, said there was a need for chalking out a long-term policy that could focus on export

industry.