KARACHI, June 6: The textile industry has strongly criticised the budget proposals for not giving much needed relief and concessions to the crisis-ridden sector which is confronting with high cost of production and dwindling per unit price on the world market.

Dr Ikhtiar Baig, chairman FPCCI committee on textile and cotton, said that the budget for 2006-07 did not offer any incentives to boost exports and attract investment particularly in the textile sector. “The textile industry in coming days will face severe crisis due to ever increasing cost of doing business,” he feared.

He said that the industry had already hit hard by massive hike in electricity and gas rates and now with the 33pc raise in salaries of workers in one-go by increasing minimum wages from Rs3,000 to Rs4,000 would sharply push up the manufacturing cost rendering our goods uncompetitive on world markets.

S M A Rizvi, patron-in-chief of Towel Manufacturers’ Association of Pakistan (TMA), said that despite repeated assurances at the highest level no incentives or relief measures were announced in the budget for the largest industrial sector of the country.

He said that just one month prior to the announcement of the budget, the prime minister had shown great concern over declining trend in exports of textiles. He even ordered that special committee should be made to highlight the weak points of the industry as well as recommend remedies to make the textile industry competitive.

Mr Rizvi further said the prime minister called a high-level meeting in the last week of May and assured the representatives of textile industry that everything possible would be done for boosting textiles export, but the budget did not carry any incentives or measures for textile and export trade.

“We are not against raising the wages of workers or other social uplift programmes for employees but the government should first see that unless industrialists make profits these reforms could not be possibly carried out,” he asserted.

As an excuse the government will now announce that everything good for the textile industry will be announced in the Trade and Textile Policy, he remarked.

Abid Chinoy, chairman Pakis tan Cloth Merchants Association (PCMA), regretted that the budget lacked relief and incentives for the industry and export trade especially textile sector.

He said that the business community was expecting much more relief in the shape of fixed electricity rates and oil prices and reviewing of hike in gas tariff, which would be effective from next month. “Measures for reducing the cost of doing business are urgently needed to ensure Pakistan exports to stay competitive on the world market,” he demanded.

He appreciated the move to abolish the condition of depositing 15 per cent of the principal amount involved in litigation while filing appeal by taxpayers against the decision of sales tax department.

He expressed his surprise over total disregard and ignorance in the budget for the trade, industry and export which were facing great hardship due to high cost of inputs, thereby, making country’s export uncompetitive in the world market.

Ghulam Ahmed Ismail, former chairman PCMA, said that the new budget was totally silent on textile industry which was presently passing through its most critical period.