Textile leaders seek incentives

Published August 6, 2008

FAISALABAD, Aug 5: Pakistan textile exporters have been denied even a level-playing field, while its competitors -- China and India -- give rebates and subsidy on textile exports.

All Pakistan Bedsheet and Upholstery Manufacturers Association chairman Jalaluddin Roomi, Pakistan Textile Exporters Association acting chairman Muhammad Naeem and Multan Dry Port Trust chairman Syed Asim Shah addressing a joint meeting here on Tuesday, said China announced 13 per cent rebate each on value-added textile and different products like clothing and fibre from August 1.

On the contrary, they said, the Pakistan government had increased the rates of gas, electricity and petroleum products in last six months by 33 per cent pushing the cost of production, instead of facilitating the textile sector to hold its share in the international markets.

They said neither any concession nor any rebate had been announced by the government to counter the burden the exporters had been bearing owing to recent surge in gas, electricity and petroleum products rates.

Similarly, they pointed out that Pakistani textile products were confronted with anti-dumping duty in Europe and high custom tariff in US and the government had not provided any support to offset these external trade barriers.

They said India was also supporting its textile exporters through Technology Upgradation Funds Scheme as well as reimbursing the mark-up charged from exporters. These supportive measures were in addition to low priced inputs and utilities available to our rival country exporters, the exporters added.

The meeting demanded continuation of research and development support facility for fabrics and home textiles across the board saying that it was not a subsidy but a compensation for duties and taxes paid by the exporters and industry in the chain of production.

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