KARACHI, May 22: There was great need for enhancing capacity in the industrial sector if due share has to be captured in the world market. To achieve this goal the government should ensure availability of utilities at reasonable rates and infrastructure.

Furthermore, all measures should be taken to produce skilled workforce, which is of paramount importance for quality and efficient production.

These recommendations have been made by Towel Manufacturers' Association of Pakistan (TMA) for the budget 2004-05. TMA feels that without ensuring the availability of land, building material and utilities at competitive rates capacity building in the industrial sector could not be encouraged.

For this purpose, the association pointed out that the government needs to identify and establish industrial parks, not only for textile sector but also other sectors contributing for higher economic growth.

The TMA has further stated that Small and Medium Enterprises (SMEs) though have edge in price due to their lower cost but they are unable to get large shares in exports because the world traders cannot rely on their supplies.

Therefore, it suggested that the SMEs should be brought under the ambit of large companies so that buyers' problems are resolved through such companies.

It feels that the rate of sales tax was too high and there was a need of gradual reduction in its rate with two equal instalments of 2.5 per cent for two years to bring it down to 10 per cent. The sales tax refund rules be made business friendly so that no delays are occurred in its payments.

Similarly, TMA feels that the agriculture sector should also be given attention to improve yield and to ensure cotton production free from contamination.

The association pointed out that raw cotton production was stagnant for the past few years at around 10 million bales. But demand was on the rise and is likely to touch 15 million bales in couple of years. Therefore, effective measures be taken to increase in acreage and more important in yield.

It also raise issues related to social sector like healthcare and education and stressed that the government should increase funds for such sectors. Transportation sector be revamped and mass transit system to set up. Problems related to labour laws, environmental laws and social compliance should also get due attention.

The burden of taxes on fixed income groups like salaried class and duties on import of basic raw materials are among those issues which should be resolved.