Dr Mirza Ikhtiar Baig, Adviser on Textile to the government, has suggested that one per cent duty drawback should be given to those yarn exporters who also supply in the local market, in his letter to Rana M Farooq Saeed Khan, Federal Minister for Textile Industry.
Dr Baig said he had conducted various meetings with textile associations including Javed Bilwani, Chairman of Pakistan Apparel Forum, Anwar Ahmed Tata, Chairman of All Pakistan Textile Mills Association and Bashir Ali Mohammad to encourage supply of cotton yarn to the value-added textile sector.
He said they were of the opinion that one per cent drawback allowed to large export houses in the textile policy may be given to suppliers of yarn to the local value-added textile sector. This incentive will encourage them to supply locally instead of exports and will ensure supply of required yarn to the value- added sector.
In the budget, Rs2 billion have been allocated under the scheme of large export houses for the current year and can be utilised for the said incentives to local suppliers of yarn to the value-added sector, said the letter. He said, "Bangladesh has given similar incentive (GSP) on local supply of raw material to its garments industry."
