Pakistan: PRGMEA urges govt to adopt pro-textile policies

Pakistan Ready-made Garments Manufacturers and Exporters Association (PRGMEA) demanded government make pro-textile policies.

In light of a shift in orders from China, much-likely trade concessions from the European Union and the recovery in the world economy are the factors on which the government could benefit the textile sector.

Chairman PRGMEA Mubashar Naseer said Bangladesh woven garment industry has registered 42 percent growth in exports this year due to relief and concessions in taxes, duties and regular power supply. The Pakistan woven garment industry exports have also leapt about 40 percent during 2010-11 and more was much likely subject to the friendly attitude of government policymakers, he said.

The government should release drawbacks of the value sector under the Drawback on Taxes and Levies Order, 2009 Scheme, known as DLTL scheme.

A discontinuity of the Drawback on Taxes and Levies Order, 2009 Scheme is not in the interest of the value industry, he added. He stressed to continue DLTL Scheme during 2011-12 to sustain growth in textile exports besides sped up refund of duty drawbacks. Government came out with a textile policy, proposing to sanction drawbacks worth Rs 17 billion for 2009-10 fiscal and Rs 27 billion for the 2010-11 fiscal.

The former Finance Minister Shaukat Tarin and ex-Minister for Textile Industry Rana Muhammad Farooq Saeed Khan had given assurance the DLTL Scheme would not be withdrawn before the expiry of the Textile Policy 2009-2014. But these promises have not been kept and this has belied the trust of the exporters and also made it impossible for the exporters, who were struggling to attain the export target of $25 billion, to withstand competition in the world market.

The textile export target of $25 billion has been fixed by the Ministry of Textiles and is to be achieved by 2014.

He said the value added exports registered an increase in exports by 32 percent in value terms and 36 percent in volume terms. He said the government has so far paid only 14 percent against the claims for 2009-11 while deferring rest of the duty drawbacks claims. He said fresh orders from the foreign buyers might be shifted to Bangladesh and China in case the government did not come up with an incentive to attract the buyers.

He was of the view Bangladesh woven industry would replace Pakistan in exports of woven garment soon.

He urged Ministry of Finance, Ministry of Commerce and Ministry of Textile Industry to support industry with their policies in order to avail international market environment conducive to growth of woven garment industry.