December 20, 2006	Wednesday	Ziqa'ad 28, 1427

KARACHI, Dec 19: The textile and apparel industry leaders have outrightly rejected the perception that the devaluation of the rupee will boost the falling exports saying any such move will rather damage the entire economic structure and trigger fresh inflationary pressure.

At the launching of newly-formed Pakistan Apparel Forum (PAF) on late Monday night, the leaders expressed their utter displeasure and concern over the dwindling exports and closure of units. The leaders were of unanimous opinion that the government was not giving them due attention and was least interested in their problems.

The forum is an alliance of Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association (PCFA) and Pakistan Knitwear and Sweaters Exporters Association (Paksea).

The leaders of these trade bodies resolved to jointly raise the voice for addressing issues and problems of apparel industry under the umbrella of PAF and asked the government to ensure level-playing field for the exports of apparel vis-à-vis China, India and Bangladesh.

The PAF was represented by Prgmea chairman Ijaz A Khokhar, PHMA chairman Muhammad Naqi Bari, PCFA chairman Khawaja M Usman and Paksea chairman Naseem Farooqi.

They apprehended that if no immediate remedial measures were taken, the country would have to confront massive unemployment as the apparel industry was a major player in exports as well as job market.

These leaders complained that the government always accommodate the demands raised by All Pakistan Textile Mills Association (Aptma) which had access to the power of corridors and decisions were taken at the cost of apparel industry, which is the largest earner of foreign exchange.

Textiles constitute up to 67 per cent of total exports and apparel holds major chunk of up to 70 per cent of these exports and yet no one was ready to listen to our problems, they deplored.

They claimed that the input cost was double compared to other regional countries. The power and gas tariffs in Bangladesh were at the half of the rate being supplied to apparel and other textile industry.

There was also a demand of establishing separate Apparel Vision (short and long-term) as was done for textile industry. Similarly, there was strong demand to form Apparel Board and the concerned ministry and it should also be separate from the existing Textile Board.

They also sought appropriate representation of the apparel sector on the board of Trade Development Authority of Pakistan (TADP).

They also demanded that the government should also hold independent study on apparel industry to find out core issue and also come up with solutions necessary to save the sector which employs largest number of women workers.

However, the forum leaders made short-term proposals and demanded that they should be immediately be implemented and given to the industry in order to save the jobs of millions of workers.

They demanded increase in research and development support from existing six per cent to 10 per cent with the surety to allow it up to the year of 2014.

It was also pointed out that due to R&D support granted to units operating in the Export Processing Zone, similar status of export processing units should be given to all those units in the tariff areas whose exports are above 80 per cent of their entire production.

It was also demanded that withholding tax being collected at 0.25 per cent be suspended for apparel industry up to they year of 2015 and export refinance rate should also be reduced by 50 per cent for a period of five years. It was also demanded that Export Development Surcharge (EDS) should also be suspended up to 2010.

The forum also asked the government to cap all utility charges (power, gas and water) till 2010, which will help the industry to plan and expand by committing foreign contracts without any fear or hesitation of any changes in their tariffs. It was also suggested that there should be simplified fast track zero rated supply system of all accessories imported for exports.