July 19, 2007	Thursday	Rajab 03, 1428

LAHORE, July 18: The Pakistan Hosiery Manufacturers Association (PHMA) has appreciated the government decision to continue 6pc R&D support on export of garments for one more year. But said a well-sustained and long-term policy is the need of the hour to build confidence among the exporters.

“The step was direly needed to maintain momentum of exports of garments in the wake of fierce competition in the international market,” PHMA chairman Adil Butt said in his comments on the Trade Policy for 2007-08.

He highlighted the importance of apparel sector which not only contributes sizeable share in the country’s foreign exchange earnings but also employs around one million workers. There are a number of downstream industries which are directly and indirectly related to this vibrant sector of the economy.

He stressed the need for continued government support to keep the industry moving ahead. “This is the area which has tremendous potential for further growth,” he added.

He called upon the economic managers to devise sustainable polices for apparel sector to enable the stakeholders workout future strategy for international market. “Not only temporary arrangements like 6pc R&D support, but also more concrete steps are needed to cope with international competition.”

In this context he referred to recent increase in subsidy announced by the Indian government whereby duty drawback rates had been increased to help exporters capture overseas markets.

“Detailed workings on comparatively higher cost of production in Pakistan have already been presented to the government through the Tariq Saigol Committee but unfortunately it has not been able to attract government’s attention so far”.

He demanded that the report may be adopted in policy initiatives to make the industry stay operational.