KARACHI, March 22: The textile ministry appears least bothered over the negative impact, which the textile and garment accessories manufacturers anticipate in case duty-free import of the material is allowed.

The duty-free import of textile and garment accessories is one of the main proposals submitted by the textile ministry to the government aimed at reviving the textile sector.

Chief Executive of Ahmad General Mills Masroor Ahmed Alvi, who is also the chairman of F.B. Area Association of Trade and Industry (FBATI), said he had taken up the duty-free import proposal with Textile Industry Minister Mushtaq Ali Cheema on Wednesday at the foundation-laying ceremony of the Textile City but the minister had not taken it seriously.

Alvi pointed out that he informed the minister about the negative impact of the proposal and sought time for a meeting to discuss the issue in detail but the minister was least concerned. However, Mr Cheema requested him to send a detailed report if the accessories makers had some reservations over the duty-free import.

Joining the FBATI chairman, Mohammad Idris Gigi , chief executive of Gigi Industries and chief executive of Asli Pari Sewing thread Mohammad Irfan said that the local industry would suffer very badly in case duty free import is allowed. They said that over 90 per cent of garment accessories are manufactured in Pakistan while five to 10 per cent arrive through smuggling and under-invoicing.

They said a vast majority of textile accessories manufacturers (around 20 items including elastics, zippers, woven labels, buttons etc) were indirect exporters as 100 per cent of their products are being consumed by the direct exporters.

These units are basically small and medium enterprises (SMEs) and do not avail any kind of financial support from any bank or financial institutions and they run on 100 per cent self-finance basis.

Accessories manufacturers over the years have acquired hi-tech advanced technology and are fully capable to cater to the exporters’ requirements both in quality and quantity.

They said that these SME units provide employment to over 0.5 million skilled and semi-skilled workers all over Pakistan. They said that the ministry was acting seriously on the proposal submitted by some exporters who are already enjoying zero-rated import under various SROs and DTRE scheme.

In case the duty-free import of accessories is allowed it will open doors for the commercial importers and in the long run the manufacturers of the textile accessories will be left with no choice but to shut down their units rendering thousands of people jobless.

They said that the textile accessory manufacturers will stand no chance of survival if import of their raw materials (polyester yarn, nylon yarn, rubber thread and plastic compounds) has 25 per cent customs duty, while the import of their finished products is sought at zero per cent duty.

They recalled that in the 2000 budget the industry had faced similar situation when the budgetary decision had created an anomaly by allowing duty free import of accessories. Later, after strenuous efforts the issue was resolved in the interest of local accessory manufacturing units.