Pakistan
On the lines of incentives provided by other countries like China and India to their respective textile and garment sectors, the Pakistan government has also
approved a mark-up subsidy of 3 percent to the spinning sector for a period of
two years. The period began from July 1, 2007 and ends on June 30, 2009 and the
amount payable till December 2008 would be paid in March 2009 and for this year
in July. The government has already earmarked Rs.1.7 billion against the 3
percent subsidy, by depositing the same with the State Bank of Pakistan and made provision for another Rs.4 billion to be paid under the R&D fund.
Earlier while addressing the seminar, Mr. Farooq said that,
the State Bank of Pakistan had started accepting R&D claims, the payment
for which may begin, early next week. He also revealed that the government had
allowed import of five year old machinery, as suggested by the industry trade
bodies.
India
Government of India has announced following series of steps
through stimulus packages to strengthen waning textile industry
Increase in Drawback rates:
- On cotton
knitted fabrics, from 4.5% to 5%
- On
man-made knitted fabrics, from 8.7% to 8.9%
- On
woollen knitted fabrics, from 5.7% to 5.8%
The Value cap has been enhanced for Cotton yarn, grey from Rs.8.00
per kg to Rs12.00 per kg.
In the first stimulus package government had made provision
for paying Rs.140 billion under the Technology Up-gradation Fund Scheme (TUFS)
to the textile industry under the scheme.
All the above changes in drawback are being implemented with
effect from 1st September, 2008. Drawback will henceforth be also
allowed on boots/ half boots/ shoes of leather cum synthetic/ textile materials
at 10.5% subject to a value cap of Rs.110 per pair.
In February-2009, Government decided to provide 5% incentive
for exports of cotton from India and allowing government agencies such as
Cotton Corporation of India (CCI) to provide discounts for bulk purchase of
Cotton. The Government of India has announced 5% duty credit scrip for raw
cotton with effect from April 1, 2008 and the benefit would be available for
all cotton exports made and till 1.7.2009.
Measures like extension of interest subvention of two
percent on pre and post shipment credit till September 2009, which was to expire
from March 2009 is announced in the Interim Union Budget
Indonesia
Indonesian textile and exports have received a double bounty
in the form of duty free access for their goods to other countries. First, it
was Japan and now Australia too has supported the move to allow products from Indonesia to enter the country without paying any duty. This tariff free access period will
be applicable for a period of two years from 2009 to 2010 and is expected to
help the export industry to reduce the impact of the downtrend in shipments
from the sector in the last few months, since the unveiling of the economic
turmoil. The Free Trade Agreement (FTA) with Australia and New Zealand is expected to be signed on February 27 at the high level meeting of ASEAN
countries.
