Misuse of duty-free imports feared

Published October 25, 2005

KARACHI, Oct 24: The Pakistan Woollen Mills Association (PWMA) has stressed the need for making the duty-free import of blankets conditional with import and distribution by relief agencies, NGOs, social organizations and aid suppliers.

PWMA Chairman Junaid Nawab is of the view that since the facility is for all imports (commercial as well as aid use), the availability for quake victims will not increase to the required level, as importers will concentrate on building up their trade stocks.

He said the government intended to pass on the benefit of duty relief to the victims, but the facility was being misused by commercial importers. They are bringing all qualities, including fancy blankets, to replenish dealers’ stocks with duty-free import that had been exhausted after supplying to the general public. He points out that the importers can now import duty-free blankets but they have no obligation to supply the same to the quake victims.

Mr Nawab warned that unless the facility was restricted to the agencies, the government initiative to increase supplies to the affected people would not yield desired results.

The PWMA chairman suggested that in order to save foreign exchange, the government should activate local ‘razai’ makers who have the capacity to meet total demand for refugees in a short span and at much less cost.

He also suggested that the Trading Corporation of Pakistan should be mobilized to buy razais from all over Pakistan which would not cost more than Rs300-400 — less than half the price of blanket. “The move would also create jobs for thousands. Moreover, the organized home textile industry can also supply comforters and quilts in big quantities at low rates.