May 11, 2005	Wednesday	Rabi-us-Sani 2, 1426

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SIALKOT, May 10: Pakistan Readymade Garments Manufacturers & Exporters Association and the Surgical Instruments Manufacturers Association have urged the government to give incentives to the industries in the budget for solution of their problems. Talking to journalists here on Tuesday, PRGMEA chairman Ijaz A.Khokhar said increase in the refinance ratio by the State Bank had worsened the problems of garments industry. He said 12.5 per cent import duty by other countries was hampering the Pakistani garments exports.He said: “Our foreign buyers are now diverting their garments orders to Bangladesh and China.”

Mr Khokhar demanded formation of a special task force, headed by the prime minister, to evolve a permanent strategy for the industry. He hailed reduction in sales tax to zero rate on man-made fiber by the government.

He said the PRGMEA would soon establish a well-equipped garments training institute here for producing skilled labour force.

He said there was no concept of better packaging and marketing of export items in Pakistan, therefore, the government should hire foreign consultants in collaboration with the EPB and PRGMEA as advanced packaging and marketing were vital for exports development.

He suggested that the officials of commerce and customs groups should be deputed as commercial attaches abroad or the Pakistani embassies should hire graduates which could be helpful in enhancing Pakistani exports in international markets.

Mr Khokhar urged the government to allocate a permanent seat for Sialkot in Export Board of Pakistan for the solution of problems of cottage industries.

Meanwhile, the SIMA has urged the government to announce two-year tax exemption for all small and medium enterprises besides, abolition of withholding tax on industrial power bills in budget.

SIMA chairman Chaudhry Muhammad Ikram urged the government to enhance withholding tax exemption limit from Rs25,000 to Rs100,000 besides, directing the authorities concerned to collect the workers welfare fund on more than Rs200,000.

He demanded reduction in import withholding tax from six per cent to two per cent.