Your current location: Texglobe - News center - BusinessNews - Text

Textile industry waiting for notifications and SROs

Updated: 2009-8-28 Source: Business Recorder
Textile industry is keenly waiting for relevant notifications and SROs on recently announced five-year textile policy by the federal government. According to the textile circles, both the textile industry and exports were suffering badly in the absence of relevant business processes of textile policy initiatives.

They said the investors as well as the exporters are pending their orders and deliveries, as they are interested to deal it under the Export Finance Facility (EFF) announced in the textile policy. The textile policy envisages that the government would provide EFF at five percent to all sub-sectors of the industry, including yarn and fabrics. They said the State Bank of Pakistan (SBP) should win the hearts of the industry and the exporters by issuing notification on EFF in a situation where the industry is losing ground due to highly adverse circumstances.

Similarly, they added, the Long Term Finance Facility (LTFF) to the earlier disallowed sub-sector, ie spinning sector, is a major breakthrough of present textile policy, as the spinning sector has had attracted huge investment. Further, it is highly capital intensive and an important link of the value chain of textile industry. They said that government should issue these circulars and relevant notifications immediately to facilitate the investors vying for further investment in this sector.

The industrialist also said the extension of duty drawback against exports as well against domestic sales of yarn and fabrics to export houses is a third important initiative in the Textile Policy and an immediate issuance of required notification to this effect would support the market sentiments, presenting a sluggish look due to high cost of doing business. The initiative of an exemption to the textile industry from load shedding is another breakthrough where the textile industry is expecting an early relief, as according to the textile circles only availability of electricity would materialise the dream of $25 billion exports in the next five years.