May 08, 2008	Thursday	Jamadi-ul-Awwal 2, 1429

KARACHI, May 7: The textile apparel industry has urged the government to constitute a task force to determine issues and problems being confronted by the industry and then to suggest measures to ensure its viability and competitiveness in the world market.

Exporters from other clothing and textile manufacturing countries are getting subsidies and export promotion packages from their respective state and federal governments whereas ever-rising cost of doing business

in Pakistan has completely eroded profit margins, thereby reducing their share in the world market.

This was stated by apparel industry leaders at a joint press conference held on Wednesday.

The industry leaders primarily want the government to come forward and save them from rising cost of utilities, such as gas and power, and also to ensure their viability by giving them matching incentives and concessions as given by regional countries.

These leaders were highly critical of the remarks by the State Bank of Pakistan governor regarding misuse of research and development support fund by the textile industry.

Instead of rescuing the crisis- ridden textile sector, they said such comments were being made, which were not only damaging, but also discouraging those who are still surviving despite all difficulties.

They said that even if investigations are carried out by the SBP, these would reveal that no exporter is involved in fraud and wrong use of R&D fund, but it is bank’s staff who abuse their power and misuse the fund.

They said Rs176 billion availed by the textile sector under the Export Finance Scheme during the first three quarters of the financial year 2007-08 is a meagre amount if compared with export performance of the apparel sector, and it would not be wrong to say that the sector has utilised much below its entitlement.

On the contrary, the government has been treating apparel industry at par with other textile sector, and has deprived it of its genuine support and concessions as given by the neighbouring countries to their value-added sector, these leaders maintained.

These incentives include direct equity support and special reduced interest rates on short-term financing.

Furthermore, these countries are giving huge infrastructure facilities in the form of labour housing, free and cheap land, and utilities at reduced rates.Apparel industry leaders who spoke included Pakistan Towel Manufacturers Association chairman Mohammad Usman, Pakistan Bedwear Exporters Association chairman Shabir Ahmed, former EBP chairman Wajid Jawad, and former chairman of Pakistan Cotton Fashion Apparel Association Javed Akhtar.