November 28, 2006	Tuesday	Ziqa'ad 6, 1427

LAHORE, Nov 27: Leaders of four bodies representing garments and apparels manufacturers and exporters are scheduled to meet in Karachi on Wednesday to forge an “informal alliance” and form a group to make joint efforts for the resolution of problems confronted by them.

The four associations, which have decided to work in close collaboration for collectively voicing their demands, include Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association (PCFAMEA) and Pakistan Knitwear and Sweaters Exporters Association (Paksea).

Between them the members of these four bodies fetch and share export revenues to the tune of $2.5-3 billion, but feel that the government does not attach much weight to their problems when they raise the same, separately.

“Although the garment sector has been making a considerable contribution to the country’s revenue through exports, we are not given the importance that is accorded to the spinners and weavers. It is mainly because all the four associations, which face identical problems, have so far been knocking at the doors of the government individually,” says Prgmea Chairman Ejaz Khokhar, who took the initiative for forging the alliance.

As compared to the textile sector, he feels that the All Pakistan Textile Mills Association (Aptma) enjoys greater clout in the power corridors and has direct access to those who matter in the government. It is in spite of the emphasis laid by the prime minister on value-addition in textile industry, he added.

He says the maiden meeting of the joint group will decide the structure of the alliance and determine its functioning. He made it clear that the new group would not replace the existing bodies but will act as “political arm” of the entire value-added garment and apparel sector.

The first meeting of the group is also likely to deliberate on the implications of the Free Trade Agreement (FTA) signed between Islamabad and Beijing during the recent visit of Chinese President Hu Jintao.

“We are not opposed to the FTA. But we want, and had proposed to the government, to put such finished textile goods as garments and apparels, in the negative list in order to protect the local industry,” says Khokhar.

He, however, favoured tax and duty free import of raw materials for the value-added garment industry from China. “Import of raw materials for the garment and apparel industry would help increase exports,” he added.

It may be recalled that the value-added garment sector, which mainly comprises small and medium size units, has been facing severe problems due to rising costs of inputs and utilities for the last several years.

The problems have been further compounded by the hike in the bank interest rates as a consequence of tightening of the monetary policy by the central bank to control inflation.

Many knitwear units have already gone out of business because of rising production cost and higher financial charges while scores of other knitwear and woven garments manufacturing units are trying to survive through the present crisis.

Although the federal government has constituted a National Textile Strategy Committee (NTSC) with the mandate to draw up recommendations for resolving the issues facing the entire textile chain, the garment and apparel producers and exporters feel their issues may not “get adequate space in the final report” to be finalised for presentation to the prime minister by the committee towards the end of next month.