KARACHI, Aug 13: SITE Association of Industry, composed of mainly textile industry, has requested German companies to allow manufacturing textile machinery and spare parts under licence facility.

This arrangement would drastically cut the cost of textile plants and give boost to textile sector here. Germany has already provided the facility to India's textile sector and it has proved very helpful in its growth, said the chairman, SITE Association of Industry, M. Nisar Sheikhani.

The issue was raised during a meeting of Member of German Parliament and President of Germany-Pakistan Business Forum, Klaus-Werner Jonas, and Counsel General of Germany in Karachi, Ms Verna Grafin Von Roedern with members of SITE Association of Industry at the association's office here on Thursday.

The meeting discussed various trade and investment issues between the two countries and decided to increase interaction between business communities of both the countries to increase bilateral trade and investment.

The chairman, SITE Association, informed the meeting that the use of German machinery by Pakistan's textile sector was more than 60pc whereas textile processing mills in specific were nearly 100pc dependent on German machinery.

He also urged upon the German MP to lobby in the European Union for continuity of GSP to Pakistan beyond 2004. The European Union was planning to declare Pakistan as a near-to-developed country and withdraw the Graduate Support Programme (GSP) facility by the end of this year. It is meant to provide support to a developing country.

With the withdrawal of the GSP, Pakistani goods would have to bear at least 12pc to enter the markets of EU member countries making these un-competitive. The German MP underlined the need for cooperation between corporate sector and universities in BMR. He also suggested establishment of cartel.

He said small and medium enterprises in Germany were interested in trade and investment ties with Pakistan. However, he had discussed the issue with Pakistan authorities in Islamabad.

He expressed the hope that German delegations from SMEs would visit Pakistan soon. He said this was his third visit to Pakistan in last four years with last visit in October 2004. During this visit here, he also visited Zeimen's Company's establishment operating in SITE Area.

He expressed satisfaction over the economic growth of Pakistan and saw prosperous future of Pakistan. He assured all cooperation and support to Pakistan to promote trade and investment ties with Germany.

Counsel General of Germany reiterated to provide maximum facilitation to Pakistan's business community. Majyed Aziz sought Germany's support in removal of tariff trade barriers like anti-dumping duty specially by European Union. Dr Mirza Ikhtiar Baig also made some queries. -APP