Zardari says no to restricted regime in textile industry

LAHORE  (October 21, 2010) : President Asif Ali Zardari has pledged All Pakistan Textile Mills Association (APTMA) no to the restricted regime of any sort in textile industry. "Only targeted subsidy will be offered to the weak industry links, if required," he said. President Zardari made this policy statement in a meeting organised in presidency to congratulate Chairman APTMA Gohar Ejaz for his rousing win in APTMA annual elections.

Congratulating Gohar Ejaz and his team, President Zardari said he was happy to see young, dynamic and energetic APTMA team, said sources. Federal Textile Minister Rana Farooq Saeed was also present on the occasion. According to the sources, the APTMA delegation sought policy guideline on textile industry from the President Zardari while pinpointing that some nine SROs had hit the viability of textile industry last year alone. Gohar Ejaz said the cotton prices have doubled this year and fears of any restricted regime against textile industry would multiply the agony of textile millers.

APTMA Chairman stressed that the industry is fully able to fetch additional exports worth $4 billion besides pocketing Rs 220 billion extra to the cotton farmers if government is able to keep free market mechanism intact for textile chain. He emphasised the point that the industry was already in crisis, as no cotton stocks are available at present and an immediate purchase of Rs 300 billion is a must to keep its wheel moving ahead. And, he added, it is possible only if government honours its commitment on free market mechanism in the country.

Sources said the President fully backed APTMA stance and stated categorically that there would be no extension to the restricted regime in textile industry and only targeted subsidy, if required, would be provided to the weak links of the industry. President Zardari also urged the APTMA leadership to assist government on important economic policy decisions pertaining to growth of textile industry right from cotton economy to the market access offered by the European Union, sources added. Gohar Ejaz told Business Recorder that both President and APTMA are on the same page so far as free market mechanism in textile industry is concerned

APP adds: President Asif Ali Zardari said on Wednesday that the government was vigorously pursuing the progress recently made in the European Union's foreign ministers meeting for the grant of market access of Pakistani goods to the European trade markets. The President urged the business community to gear up efforts and add more value to the manufactured goods for optimum utilisation of the trade concessions that will be offered by the European Union.

The duty free exports to the EU countries will not only boost Pakistan's exports but also enable the country to generate economic and employment opportunities to look after the people initially affected by war against militancy and by the recent devastating floods.

Chairman All Pakistan Textile Mills Association (APTMA) Ejaz Gohar offered to make financial investment for setting up a crop assessment body to assess the quality of crops and their export potential through satellite imaging. The President appreciated the offer and advised the government to pursue the idea.

Chairman APTMA said that access to Pakistani textiles in the European markets would rejuvenate national economy by adding 220 billion rupees to it and generate large-scale new employment. He appreciated President's personal efforts in this regard. The APTMA Chairman apprised the President about the steps being taken by the textile industry to boost Pakistan's exports into the EU and the US markets and also various problems being faced by the industry.