KARACHI, Aug 30: Commerce Minister Abdul Razak Dawood on Friday advised textile tycoons to buy and acquire the US and European brand names as well as distribution companies to meet the challenges that may arise following the removal of quotas from Jan 1, 2005.

Speaking at inauguration ceremony of PHMA Institute of Knitwear Technology, the minister said the textile industry had already done a lot of hard work and prepared itself to meet the challenges of free market era.

However, Mr Razak suggested to the textile industry that their ultimate goal should be to develop and promote Pakistani brand names for which the government would provide financial assistance and also support such ventures at every level.

He said the ECC meeting on Thursday approved that the State Bank would ensure availability of foreign exchange needed to buy foreign brand name or a company. The minister said that it was highly encouraging that share of value added goods in total exports during 2002 had moved up to 57 per cent as compared only 37 per cent recorded in 1995. He expressed the hope that by Jan 1, 2003, the share would further increase to 59-60 per cent.

After the Sept 11, he said, the most affected sector of textile industry was the hosiery products, but still their exports were close to one billion dollar.

Abdul Razak said towel manufacturing prices were presently lower than those were about 25 years ago, but such matters could not be controlled “because we have no choice but to keep moving or walking away from the business.”

The minister anticipated that after the removal of quotas there would be a big challenge and said the textile industry had already reached mid-way point under ‘Textile Vision 2005’ and enhanced its competitiveness.

“I am no more worried about the fate of our textile exports when the sun rises on Jan 1, 2005, particularly when I was warned way back in Dec 1999, on the sidelines of WTO meeting at Seattle that the world would suddenly become buyers’ paradise and sellers would totally lose their bargaining position.”

He lauded the performance of the bedlinen manufacturers and exporters and said that today their share in the world market had risen to 6 per cent and that was only possible because of quality and dedication.

“Even US manufacturers have openly admitted that Pakistan has achieved excellence in the field of bedlinen manufacturing, he added.

Referring to his recent visit to some of the African and Asian countries, the minister said he felt that countries like Bangladesh, Morocco, Egypt and Sri Lanka were fearing about the competition they might face from Pakistani exporters after the removal of textile quotas.

He assured the business that free market policy adopted by the government would continue despite the fact that some business segments from time to time asked for the government interference. As a result the domestic consumption of raw cotton today has gone up, he added.

In the past, huge quantity of raw cotton used to be exported and fetched up to $500 million, but last year a small quantity was exported that earned only $25 million. The minister stressed upon the need for putting more efforts on human resources development.

In response to a point raised by PHMA chairman Kamran Chandna, the minister said the government would provide more funds if the association ventured for establishing PHMA Knitwear University.