Exporters to move court against favouritism: Textile package
By Parvaiz Ishfaq Rana
KARACHI, July 25: Some textile exporters’ bodies are planning to move the court of law against the recently announced ‘Textile Package’ which they feel is discriminatory as it protects and promotes the interest of a few big players in the export trade who have their own processing, dyeing and printing facilities.
The textile package allowed Research and Development (R&D) at 6pc for readymade garments and knitwear, 5pc for home textiles and 3pc for fabrics. However, it has laid down a condition that only those exporters will benefit from this facility who own processing, dyeing and printing facilities.
These leaders have alleged that terms and conditions have been laid down in a manner that R&D subsidy could only be availed by bigger exporters depriving the majority.
The exporters are also alleging that Textile Industry Minister Mushtaq Ali Cheema who owns a processing unit has protected his own interest at the cost of majority exporters of textile goods.
“For sure we are going to move the court against the decision,” the candid reply of chairman Pakistan Bedwear Exporters Association (PBEA) Shabir Ahmed. He said that like-minded trade bodies would be asked to join in this fight where justice was denied to majority.He felt that the R&D facility should have been across-the-board and all sectors of textiles involved in value-addition should have been given this benefit as they were involved in research and development work.
Mr Shabir was highly critical about the Export Promotion Board (EPB) and said that it was mostly represented by large textile groups and the representation from small and medium-sized textile units was totally lacking. As a result of this, he said, the vested interests prevail and no just solution was reached.
Responding to a question, he said that the textile package did not qualify bedwear manufacturers and exporters for availing of 5pc R&D and this was discriminatory. He further said that the government had been trying to bailout value-added sector by giving relief in the form of R&D but it turned out to be big scam where only a few big manufacturers would get benefit out of it.
Chairman Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Bilal Mulla while expressing his disappointment over the textile package said that a joint strategy was being evolved by apparel manufacturers to protect their interests and a joint fight would be carried out for survival.
He said that already over 300 units of knitwear had closed down owing to high cost of input which render the products uncompetitive in the world market. Consequently, he said that if the government was not keen to provide jobs to masses, this should not worry anybody.
However, Bilal Mulla emphatically said that it was the knitwear and readymade garment units who provide highest job opportunities, particularly to female workers and were generally run without bank borrowing because they mostly belong to small and medium enterprises.
He disclosed that in a recent meeting Secretary Ministry of Textile Industry Syed Masood Alam Rizvi agreed with the Prgmea complain that garment sector was neglected in the textile package by overlooking its demand for giving relief towards travel expenses which were being incurred by exporters for meeting foreign buyers in third country.
He further said that Prgmea along with other apparel bodies such as Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Cotton Fashion and Apparel Manufacturers and Pakistan Sweater Exporters Association (Paksea) have sought joint parleys with the prime minister to apprise him about the problems confronting the high value-added segments of the textile sector.
Chairman Pakistan Hosiery Manufacturers Association (PHMA) Javed Bilwani said that it was unfortunate that the textile package did not carry any new relief or facility for the most affected segments of the textile sector.
