July 17, 2007	Tuesday	Rajab 01, 1428

LAHORE, July 16: The Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA) has urged the government to announce a long-term policy for the garment sector.

Voicing the demand in a statement issued here on Monday, PRGMEA Chairman Ijaz Khokhar said the policy should allow an increase in the working hours of labourers, two per cent travel support fund, export processing unit status for garments manufacturing units exporting over 70 per cent of their production, zero-rated import of accessories and raw materials to be used in shirting and a capping of utility cost for five years at present levels.

He said Pakistani garment manufacturers were far ahead of their competitors in all respects, but exports had fallen because of the failure of the government agencies concerned to formulate policies in accordance with the ground realities.

He said a long-term policy was the only way forward provided that the government divided the textile sector in three major groups — Group-I ginning, spinning and weaving; Group-II woven garments and knitted garments; and Group-III home textiles and toweling and assess their needs individually.

He said all units exporting over 70 per cent of their production should be declared export processing units. This would enable them to import raw material at zero rating and bypass other social compliance issues. Similarly, he said, the government should also allow zero rated import of accessories used in apparel. Effluent treatment plants should be planned at all the major export-oriented industrial clusters with maximum government assistance.

He said other regional players in the garment and apparel sector, like China, India and Bangladesh, had devised effective and efficient marketing strategies because of which international buyers preferred to visit their countries frequently.

He appealed to all the ministries concerned to develop a strong interaction with stakeholders so that a clear policy could be devised for the promotion of apparel industry.

He said 80 per cent strength of the apparel industry comprised small and medium enterprises which deserved preferential treatment for competing in the international market.