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KARACHI: Different segments of the value-added textile sector have criticised the government for providing relief only to the spinning and weaving industry and demanded immediate announcement of incentives to help them prop up falling exports and compete with regional peers.
Leaders of different segments of the sector agreed that the government was not fair to the industry which contributed up to 80 per cent in exports.
The sector also opposes regulatory duty on import of cotton yarn which, they say, will increase their cost of production by three to four per cent and make them uncompetitive on the world markets.
Even incentives like reduction in long-term finance (LTF) and export refinance only supported the spinning sector because the value-added sector was mostly operated by small and medium enterprises, they argued.
Exports cannot go up if huge refunds towards duty drawback and sales tax remained stuck up with the Federal Board of Revenue (FBR), lamented the leaders of eight value-added segments.
They urged the government to give 5pc duty drawback on exports and immediately withdraw cess of 0.25pc which is charged on all exports and around Rs5 billion is collected on this account. They reiterated their demand of zero-rating for all export-oriented industries and reduction in the rates of utilities like gas, electricity and water.
They urged the government to withdraw Gas Infrastructure Development Cess (GIDC) or at least bring the rates at par with the regional countries.
These stakeholders were also highly critical of the trade officers and the procedure of their appointment. They demanded that the government should introduce reforms to improve the level of civil servants which has deteriorated over the years.
Pakistan Bedwear Exporters Association (PBEA) Chairman Asif Javed said bedwear exports have been falling consistently since 2006 when they were $2.1bn.
Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Towel Manufacturers Association (TMA), Pakistan Hosiery Manufacturers Association (PHMA) and Pakistan Knitwear and Sweater Exporters Association (Paksea) said they were also facing the same situation.
However, All Pakistan Textile Mills Association (Aptma) Central Chairman Tariq Saud appreciated Finance Minister Muhammad Ishaq Dar and his team for their decision of protecting the domestic market from the dumping of highly subsidised imports of textile products.
“Unchecked dumping of textile products was hurting the sector and could have resulted in a large-scale shutdown of industries,” he maintained.
Published in Dawn, October 20th , 2015
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