June 11, 2006	Sunday	Jumadi-ul-Awwal 14, 1427

KARACHI, June 10: The Karachi Chamber of Commerce and Industry (KCCI) has urged the government to give some relief to the value-added textile industry because no worth mentioning concessions or measures had been announced in the budget, particularly with regard to high cost of inputs.

In a letter addressed to Prime Minister Shaukat Aziz, KCCI acting president Muhammad Naqi Bari pointed out that value-added textile-cum-export sectors were ignored at a time when they were passing through serious crisis owing to tough competition from regional countries.

He said that industries, such as knitted, woven garments, towel and bedlinen were making value-addition by converting raw cotton of 50 cent per lb into finished goods worth $5 to $6 per piece of an average weigh of one pound.

The textile industry, Mr Bari said, was confronted with many problems of which the biggest issue was that foreign buyers were not visiting Karachi due to a negative projection of its image. “As a result, exporters have to visit these buyers along with samples, which results in enhancing the cost of production.”

Furthermore, the KCCI acting chief said energy cost in Pakistan as compared to Bangladesh was also higher and despite the fact that Bangladesh did not produce a single bale of cotton, yet it had become a major competitor of Pakistan in the world market in textile products.

Mr Bari suggested that some relief should be given to the textile industry, particularly in energy by putting it on a par with fertilizer producing units. He said value-added textile exports should be given gas and power tariff on the basis of five per cent fob value as discount.

He said further that a travel cost compensation should also be given to the exporters at five per cent of fob value and withholding income tax be reduced to 0.50pc. “The export refinance rate should be reduced from 7.5pc to 3.75pc and the EDF be abolished.”