KARACHI, June 20: The textile apparel sector has urged the government to immediately come out with a relief package to rescue the export-oriented industry from a total collapse.

Taking strong exception to the budgetary proposals for fiscal 2007-08, the Pakistan Apparel Forum, representing four leading sectors of textile apparel, sought immediate relief in fiscal and monetary polices of the government.

Leaders of these export bodies cautioned the government that if immediate remedial measures are not taken, the units will start closing down, which would result in mass unemployment.

It was pointed out that by enhancing the minimum wages to Rs4,600, the government has over-burdened the industry which is already fighting for its survival.

The high rate of inflation, which could not be passed on to foreign buyers, coupled with a further increase in the cost of production, has left little room for the value-added textile sector to sustain.

The PAF represents Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association (PCFA), Pakistan Sweaters Exporters Association (Paksea). The organisations have jointly sought extension in six per cent research and development support till 2010 and some other relief measures.

They also asked the government to reduce income tax on exports to 0.25pc and withdraw export development surcharge on value-added textile sector.

Leaders of the trade bodies also demanded representation in the board of governors of the Trade Development Authority of Pakistan (TDAP), and said the apparel sector be given the status of export processing units.

It also demanded special discounted gas tariff for the value-added sector which directly earns foreign exchange for the country.