Pakistan: Input being taken for textile policy: minister

The federal government has been organising seminars on textile industry across the country following President Zardari’s instructions to chalk out a comprehensive and flawless textile policy.
After a series of seminars, a grand final seminar on problems and needs of the sector would be held at the presidency next month and in the light of recommendations from the seminars a national textile policy would be formulated and announced.
Federal Textile Minister Rana Muhammad Farooq Saeed Khan expressed these views while speaking to textile sector stakeholders at the Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) zonal office here on Friday.
“I have already visited Karachi and Hyderabad and collected feedback from the textile sector before reaching Lahore,” he said. “Now I will visit Faisalabad, Multan and Sialkot before ending the consultation process.”
Responding to a query about expected relief package after the consultation process, he refused to disclose it before time. He pointed out that the government had not assigned Textile Adviser Dr Mirza Ikhtiar Baig any task to collect recommendations from the textile industry for the national textile policy. “Dr Baig is an adviser to the ministry and not the government of Pakistan as suggests the letterhead of Dr Baig.”
The minister said the government would consider the demand of textile mill owners to abolish refundable taxes, adding the textile sector could get rid of the crisis but banks could also come under pressure if it lasted longer.
“The present mark-up of 20 per cent is higher to run the industry and the government cannot pressurise banks in this regard.” This was the reason why the Bhutto government nationalised banks, the minister added. “The Russian economy is strong and the textile exporters should explore the Russian market.”
He blamed former finance minister Ishaq Dar’s policies for the sharp rise in dollar value. “Dictators are responsible for the present situation who made Mujahideen and declared them terrorists.”
FPCCI Vice President and Zonal Chairman Mian Muhammad Idrees highlighted the problems faced by the economy and appreciated the government for providing Rs4.5 billion as research and development support and Rs1.3 billion as sales tax refund.
The textile industry had a 46 per cent share in the local manufacturing sector. However, out of $19 trillion world market, Pakistan had a share of less than one per cent, he said.
The textile sector, he said, had still the potential to enhance its share in the world market, provided “we focus on modernisation of machinery, infrastructure and produce skilled manpower.” Though the government had declared textile exports zero-rated, the exporters had to pay about 9 per cent direct and indirect taxes, he pointed out.
The government should reschedule bank loans for two years, reduce interest rate to single digit and launch schemes for export finance and duty drawback.
He also stressed the need for privatisation of all power distribution companies, disconnection of gas supply to compressed natural gas (CNG) stations, effective load management to reduce production losses and provision of furnace oil at international prices.
The textile industry had invested $6.4 billion in the past and Pakistan was ahead of other South Asian countries in home textile, he said and asked the government to take measures to increase the textile sector’s share to 20 per cent in the world market.
All Pakistan Textile Mills Association (APTMA) Chairman Adil Mahmood urged the government to ensure availability of Bt cotton seed before next sowing. He also spoke against imposition of anti-dumping duty on Chinese polyester, saying the National Tariff Commission should have taken the decision in the national interest.
Pakistan Hosiery Manufacturers Association (North Zone) Vice Chairman Adil Butt stressed the need for bringing down mark-up rate to three per cent and said loans for import of machinery should be provided at 7 per cent.
He said the R&D facility should be continued at least till 2012 and the zero-rated policy for export of textile products should be implemented in true spirit.