The federal government has approved clearance of pending subsidy claims of textile tycoons worth Rs4 billion and disbursement of the amount will start by the end of March, it is learnt.
For promoting textile sector, the government is also formulating textile policy by copying ‘Indian model’ to achieve a quantum leap by reversing the decline in exports and fetch billions of dollars.
“The finance ministry has sent an official message to the State Bank of Pakistan (SBP) for providing Rs4 billion to clear pending bills of the previous fiscal year of textile tycoons,” a high-level official in the finance ministry confirmed while talking to The News on Saturday. The cabinet, official sources said, had approved the subsidy amount of Rs4 billion for clearing claims of the previous fiscal year that ended on June 30, 2008.
Earlier, the Ministry of Textile had proposed allocation of Rs10 billion for clearing bills of subsidy on the name of Research and Development of the last fiscal year. But later on the ministry concerned revised its own version and submitted another summary before the cabinet in which the amount was reconciled at Rs4 billion pending claims.
“Now the Budget Wing of the Finance Ministry has forwarded official approval to SBP for releasing the subsidy claims through commercial banks in their respective areas,” added the official. The textile lobby made all out efforts to convince the government for continuation of R&D subsidy during the ongoing fiscal year 2008-09 but they failed to muster the required support owing to financial crisis being faced by the country.
The exports of textile group in terms of value addition is facing negative growth in the first seven months (July-Jan) period of the current fiscal year but exports of raw cotton helped to demonstrate some respectable figure of exports in the ongoing fiscal.
“We have flatly refused to extend any subsidy in the current fiscal year,” a high-level official in Textile Ministry told this scribe about his recent discussions with the All Pakistan Textile Mills Association (APTMA) in Islamabad.
“What else the Ministry can do for promoting the textile sector, we are ready to help them,” said the official. The Ministry of Textile, the official said, is currently working on a comprehensive textile policy which will be finalised by May or June this year.
The upcoming textile policy would mainly focus upon up gradation of technology, improving infrastructure and promoting human resource development for materialising the real potential of this country in this neglected sector.
Pakistan stands at fourth position in the world in terms of cotton production as China, India and Brazil are ahead of us but Pakistan is lacking in terms of achieving value addition for ensuring quantum leap for boosting exports up to the real potential level.
Dwelling upon Indian model, the official said that New Delhi promoted public private partnership to achieve up gradation of technology as currently obsolete textile machinery is being used in the country.
The government can offer 20 per cent subsidy for achieving up gradation of technology and the private sector will have to arrange the remaining 80 per cent, said the official.
The up gradation will have to be ensured from picking up the cotton bales as ratio of contaminated bales are quite high in Pakistan, he maintained.
He said that the Textile University Faisalabad would also be upgraded by offering new courses in consultation with NAVTEC and TEVTA. A fashion school will be established in Karachi in months ahead, he concluded.
For promoting textile sector, the government is also formulating textile policy by copying ‘Indian model’ to achieve a quantum leap by reversing the decline in exports and fetch billions of dollars.
“The finance ministry has sent an official message to the State Bank of Pakistan (SBP) for providing Rs4 billion to clear pending bills of the previous fiscal year of textile tycoons,” a high-level official in the finance ministry confirmed while talking to The News on Saturday. The cabinet, official sources said, had approved the subsidy amount of Rs4 billion for clearing claims of the previous fiscal year that ended on June 30, 2008.
Earlier, the Ministry of Textile had proposed allocation of Rs10 billion for clearing bills of subsidy on the name of Research and Development of the last fiscal year. But later on the ministry concerned revised its own version and submitted another summary before the cabinet in which the amount was reconciled at Rs4 billion pending claims.
“Now the Budget Wing of the Finance Ministry has forwarded official approval to SBP for releasing the subsidy claims through commercial banks in their respective areas,” added the official. The textile lobby made all out efforts to convince the government for continuation of R&D subsidy during the ongoing fiscal year 2008-09 but they failed to muster the required support owing to financial crisis being faced by the country.
The exports of textile group in terms of value addition is facing negative growth in the first seven months (July-Jan) period of the current fiscal year but exports of raw cotton helped to demonstrate some respectable figure of exports in the ongoing fiscal.
“We have flatly refused to extend any subsidy in the current fiscal year,” a high-level official in Textile Ministry told this scribe about his recent discussions with the All Pakistan Textile Mills Association (APTMA) in Islamabad.
“What else the Ministry can do for promoting the textile sector, we are ready to help them,” said the official. The Ministry of Textile, the official said, is currently working on a comprehensive textile policy which will be finalised by May or June this year.
The upcoming textile policy would mainly focus upon up gradation of technology, improving infrastructure and promoting human resource development for materialising the real potential of this country in this neglected sector.
Pakistan stands at fourth position in the world in terms of cotton production as China, India and Brazil are ahead of us but Pakistan is lacking in terms of achieving value addition for ensuring quantum leap for boosting exports up to the real potential level.
Dwelling upon Indian model, the official said that New Delhi promoted public private partnership to achieve up gradation of technology as currently obsolete textile machinery is being used in the country.
The government can offer 20 per cent subsidy for achieving up gradation of technology and the private sector will have to arrange the remaining 80 per cent, said the official.
The up gradation will have to be ensured from picking up the cotton bales as ratio of contaminated bales are quite high in Pakistan, he maintained.
He said that the Textile University Faisalabad would also be upgraded by offering new courses in consultation with NAVTEC and TEVTA. A fashion school will be established in Karachi in months ahead, he concluded.
