ISLAMABAD, Feb 25: The federal government on Tuesday constituted two committees to rationalize tariff structure for the textile sector before June this year and see whether textile machinery manufacturing was possible in Pakistan.
The decision was taken at the meeting of federal textile board (FTB) presided over by the minister for Industries and Production, Liaquat Ali Khan Jatoi.
“We are not satisfied with the present tariff structure and constituted a committee led by secretary industries Dr. Akram Sheikh to rationalize tariff rates,” he said at a press conference after presiding over the meeting of Textile Board.
Textile sector, Jatoi said, raised the issues of sales tax refund and other issues related to the CBR, which would be resolved on priority basis as the government wanted to support this sector.
The minister said that FTB has fixed the export target of $9.15 billion by 2005, but he had asked them to increase it to $15 billion, which was quite possible with the modernization of textile sector.
It has also been decided to modernize old textile plants to produce quality goods. The meeting also constituted another committee to study a proposal whether it is viable to manufacture textile machinery in Pakistan and if not how the machinery can be imported on lowest duty.
He said that Pakistan usually consumed 18 to 20 per cent polyester in textile products but now planned to take it to 50 per cent by 2003. For this purpose, the private sector would import 5 million spindles, the minister said.
He said that FTB has also decided to extend incentives to the cotton growers so that they could sow specific varieties, adding it has also been decided to launch media campaign to apprise the farmers about the varieties which are suitable.
He said that the FTB, which rarely met in the past would now hold regular meetings after every two months to evaluate the progress.
Jatoi, who just returned from Bahrain after meeting king, prime minister, ministers for industries, commerce and private sector, said that investors were interested to invest in Pakistan.
He did not respond when told that the investors of Gulf States had complained to the Prime Minister Zafarullah Khan Jamali during his recent visit that they face problems at the airports in Pakistan.
He, however, said that the Ministry of Industries has prepared a summary for the cabinet suggesting different steps to facilitate the investors.
The minister said that Pakistan was now viable for investment, but it was now up to the government to apprise the foreign investors about the sectors which are beneficial for investment.