For the past few years, the ailing textile industry of Pakistan is going through a rough phase due to hike in the prices of raw material, energy among others; however standing strong on the face of harsh competition from the neighbouring countries.
This year, the Budget will be declared on June 7, to decide the fate of the industry for the whole year, and the textile sector is optimistic that this time they are going to make it big.
Fibre2fashion, after covering an elaborate Indian budget, has moved ahead to focus on the pre-budget proposals and suggestions that are to be submitted to the present Government of Pakistan.
In this regard Mr Adil Mehmood, Chairman of the All Pakistan Textile Association (APTA), has responded positively.
According to him, APTA has been and is striving and struggling its best for protection of interest and promotion of textile industry. In sequence thereof, it has proposed and suggested the Government to provide following measures to textile in the forth coming budget.
Increasing cotton production in the country, level plying field and consistency of policy, relief to curb high cost of doing business, incentives for promotion export of textile products, simplification of laws governing business activities, rationalization of electricity Wapda / Gas tariffs, and abolishion of electric load shedding in the manufacturing facilities are the basic requirement for enhancing the textile industry.
Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA) has also suggested reduction in cost of inputs, rationalizing anomalies in various policies, encouraging investment and providing greater incentives for exporters.
According to Mr Asif Rahim, Secretary, PLGMEA, “Presently most of inputs for Leather Garments industry are exempt from Sales Tax and import duties but there are several anomalies within various laws which create hassles for exporters leading to low utilization of these schemes. Federal Board of Revenue has so many conflicting proposals that it would be very optimistic to expect high degree of acceptance of our proposals.
“Our more stress is on Trade Policy which is announced in July. We are hoping that the coming trade policy will accommodate most of our suggestion for boosting the exports of Leather Garments from Pakistan.”
Federation of Pakistan Chamber of Commerce and Industry (FPCCI) proposed that import of all raw materials should be allowed on duty free basis while higher duties should be imposed on luxury items.
FPCCI also demanded to reduce utility rates by 25 percent for export-oriented industries, reduction in the burden of taxes to compensate increase in POL prices, reduction in cost of industrial raw materials for value added industries through zero-rating of all federal provincial taxes.
Pakistan Readymade Garments Manufacturers Association (PRGMA) has presented its proposals for Federal Budget 2008 – 2009, when newly elected government is planning its future policies.
According to PRGMA, the national economy and life of the common man is under extreme pressure due to high rate of inflation, especially food inflation, rising un-employment, energy shortage and long hours of load shedding, high cost of production, lack of industrialization.
Mr Athar Ahmad asserted, “PRGMEA feels its responsibility in the process of country’s economic development, and is well aware about the fact that things have changed under ‘Globalization’ the responsibilities of private sector are completely changed and enhanced. Now, the social and economic development of a society is directly linked with the developmental activities of the private sector.
“In order to compete in the world market, we have to provide raw materials to our major industries at competitive price, hence it is recommended that raw material not locally manufactured or produced be zero rated customs duty, Tax credit and fiscal benefits be offered to encourage those industries which provided import substitution and or help us to ease power crisis in the country.”
PRGMEA have suggested lowering of sales tax on local manufacturing and imports to 10 percent instead of 15 percent. This proposal will not reduce the final revenue of sales tax as compared to last or current year, because prices of majority raw materials increased by more than 100 percent in last one year.
There was also a demand of 25 percent reduction in utility charges for export industries, duty free import of raw materials, allowing imports of machinery and raw materials from India through road and rail routes.
The agriculture chamber of Sindh and other growers associations stressed that there is a vigorous need to develop agriculture for enhancing country’s exports as the manufacturing and textile industry has failed to take advantage of global opportunities.
Source: www.Fibre2fashion.com
