KARACHI, Feb 2: Exporters gave mixed reaction on Thursday over the WTO approval to European Union’s (EU) trade concessions allowing duty-free access to 75 textile products from Pakistan.

A segment of textile exporters felt that the EU relief package would provide much-needed oxygen to ailing textile industry while others were of the view that it was too early to evaluate benefits at this stage.

Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Chairman Shehzad Salim said that the approval came at a time when the country’s value added textile industry particularly garments was suffering due to various factors.

However, he said, the delayed EU package would help to salvage the entire textile sector and create new jobs.

Jawed Bilwani, Chairman of Pakistan Apparel Forum (PAF), said that the duty-waiver would give some relief but the industry was in such a deep crisis that it needed much bigger incentive package for its revival.

Suring cost of doing business following frequent increase in POL, gas and inputs cost the industry is already under deep crisis and many units have closed down across the country.

He said the delay of one year because of objection raised by India, Brazil and Bangladesh to the EU concessions the situation had changed and exporters may not be in a position to drive due benefit from the package.

They, however, asked the government to immediately start its efforts for securing GSP-plus status from the EU, which is due in January 2014.

Pakistan Bedwear Exporters Association Chairman Shabir Ahmed said it was too early to appreciate the WTO approval because still it would require EU Commission’s approval which may take three to four months.

But in the meantime any rise in local yarn prices would directly hurt value-added textile exports, he added.

The one-time two-year EU facility, which is extendable for third year is equally damaging because the package also includes some basic raw materials of textile industry, Shabir pointed out.

He said that 75 items listed in the duty free access also include basic raw materials like cotton yarn and grey fabric and would register jump in their prices.

The local yarn prices have already increased and this is going to hurt local value-added textile industry which is faced with a number of problems mainly energy shortages, he added.