ISLAMABAD, March 4: The government has constituted a committee to work out a comprehensive action plan for development of knitwear industry which is under pressure following abolishing of quota regime last year.

Presiding over a meeting Federal Textile Minister Mushtaq Ali Cheema said that the committee had been constituted at the direction of the prime minister to work out recommendations for the revival of the industry.

The minister told the meeting that an action plan was under preparation to remove the grievances and problems of knitwear industry, an official announcement said. The meeting recommended that a transparent mechanism should be implemented to ensure smooth refund of sales tax. However, from July 2005 the sales tax on textile raw material had already been abolished for export-oriented industries.

It was also recommended that land would be provided on affordable prices to knitwear industries in the textile city and garment city projects with other infrastructure facilities. The meeting recommended that to meet the requirement of skilled workers, the skill development programme should be launched while import of cheaper skilled workers from Sri Lanka and other countries should be allowed.

The Export Promotion Bureau (EPB) had been urged to explore new markets for knitwear industry particularly in ASEAN, China, Japan, South Korea and OIC countries. EPB chairman Tariq Ikram informed the meeting that warehousing facilities would be provided in Karachi on nominal charges and for the purpose 20 acres had already been assured by the Sindh government.