KARACHI, March 2: Finance Minister Shaukat Aziz on Saturday assured the textile exporters of increase in rate of duty drawbacks to provide relief to the industry using costlier imported polyester fibre.

One of the participants of the meeting informed Dawn that a notification in this regard is expected either on Monday or Tuesday to bring it pre-July 2001 level.

The assurance was given at a closed door meeting with central managing committee of Aptma.

The textile industry had been complaining of 20 per cent import duty and 5 per cent regulatory duty on import of polyester fibre.

Agreeing with APTMA members, the minister assured that under the present depressed economic conditions the rate of duty drawback will be brought back at a maximum 9.9 per cent. He hoped that this will, to a greater extent, assist in giving fillip to the exporters.

Other issues related to banking and finance also came up for discussion. The minister was informed about the difficulties in getting finances for running the industry.

The Aptma members also took strong exception of the unilateral increase in gas rates. They asked the minister to ensure that no increase in gas or power rates should be allowed without the proper approval from the regularity authorities of both the utilities.

A member while drawing the attention of the minister towards bank finances for contamination-free cotton said that if the KCA spot rates have to be taken as base rates for getting bank finances this will in no way encourage the industry to buy cotton at premium because there is a difference of at least Rs200 to Rs300 between the two rates.

The luncheon meeting with the finance minister heard some critical views coming from Aptma members over government policies expressing their displeasure over long delays in attending the issues, a participant said.

Shaukat Aziz was informed that since long the industry had been asking the government to correct the DTRE rules, which are not only defective but are not workable as well.

Meanwhile, Aptma press release stated that Shaukat Aziz assured the textile industrialists that the government will remove all irritants in smooth operations and export of textiles to maintain and enhance the textile industry’s global competitiveness.

He informed the industrialists that the government has been successful in securing increased market access for the exports of the country.

The finance minister also said that facilitating policies have also been finalized for earlier implementation of bank financing and taxation procedure for the textile industry.

Shaukat Aziz advised the textile industrialists to rapidly promote value-addition in their production, and be fully prepared for the free trade regime, which will commence from January 2005.

The acting chairman Aptma, Anjum Saleem apprised the finance minister about the specific problems being faced by the textile industry due to global economic slow-down resulting from the terrorists attack on the US on Sept 11, 2001.

He also highlighted the slow-down in textile exports, reduction in duty drawback rates as some of the major problems requiring urgent attention of the government.