ISLAMABAD, Aug 21: The federal government is expecting cotton production of around 11.2 million bales during the current season against a target of 10.55 million bales despite rains and floods that hit the crops in Sindh.

This was disclosed in a presentation of the Ministry of Food, Agriculture and Livestock (MINFAL) here on Thursday to the meeting of Federal Textile Board (FTB) presided over by Industries and Production Minister Liaquat Ali Jatoi.

The meeting decided to constitute a task force comprising textile industry representatives and ministries concerned to be compliant with WTO related issues like labour, social, health and environmental standards.

The task force was directed to complete the work related to amendments in the regulatory framework within one month so that simultaneously implementation could take place in view of shortage of time till 2005.

The meeting was informed that the industry should prepare itself for the new opportunities and challenges by developing competitiveness and adopting standards, and becoming compliant to WTO norms.

The minister told the meeting that the government would help and facilitate the industry by reducing cost of doing business, developing business, friendly environment, required infrastructure and amendments in regulations.

Recent measures for cleaner cotton production, tariff rationalization, reduction in mark-up rate and successful negotiations for market access with the EU and the US have been supportive to the industry.

Mr Jatoi said the budgetary measures and the Trade Policy 2003-04 had covered possible areas to support trade and industry. He directed that the recommendations of the report on textile engineering industry should be implemented immediately and a committee should oversee the implementation of these recommendations.

The minister stressed the need for the vigorous campaign on radio and TV for the virus free new varieties, which have been recommended for cultivation in the country.

The meeting agreed to the continuation of the role of Trading Corporation of Pakistan for promoting cleaner cotton production programme, modernization of ginneries and adoption of cotton grade and standards as notified by the Pakistan Cotton Standard Institute (PCSI).

The meeting reviewed the performance of textile industry and expressed satisfaction over its growth. Production has shown appreciable growth in almost all products viz-a-viz eight per cent in yarn, 14 per cent in fabrics and 26 per cent in synthetic fibre.

Exports of cotton textiles have increased to $7.17 billion, which is 65 per cent of total national exports. There is a marked shift to value addition, and share of garments and made-ups has increased from 47 per cent to 58 per cent in total exports.

The textile industry has made an investment of $4 billion during the last four years for import of modern plants, development of new infrastructure and re-furbishing of existing plants, with local machinery spares and accessories.

The meeting was also given presentation on the textile engineering industry and emphasized strengthening of the textile engineering sector, which is of paramount importance but under- developed and under-utilized.

It was also recommended to encourage assembly of plants where machinery in CKD condition can be imported with 20 per cent of local substitution. Registration of all machinery manufacturing operating in Pakistan as well as local manufacture of machinery, spares and accessories with the Federal Textile Board/TCO has also been proposed in the study.