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PRGMEA criticizes federal govt's indifference over DLTL issue
Jul '11
Spokesman of Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has criticized the federal government for its indifferent attitude towards the demand for continuation of 3% Drawback of Local Taxes and Levis (DLTL) Scheme during 2011-12 to sustain growth in country's exports.

He said the woven garment exports have registered about 40 percent growth during 2010-11, while doubling the average unit price, excessively utilizing expensive fabrics in different weights and employing 30 percent of total 3.5 million workforce of textile industry value chain.

According to the PRGMEA spokesman, the DLTL has proved a lifeline for the woven garment industry and a cut to it would result into closure of woven garment units, leading to export of raw materials from the country without value addition.

He said the stitching industry is highly labour-intensive and the emerging textile economies like Bangladesh and Vietnam have registered stellar growth simply by supporting this industry. He feared that the government's indifferent attitude towards the value added woven garment industry would translate into heavy unemployment with the closure of garment units.

PRGMEA spokesman said the DLTL scheme has improved the bargaining position of the woven garment exporters, likely to be affected badly with discontinuation of it ahead, as it would push the cost of doing business up against competitors already supporting heavily their domestic woven garment industry. China is offering its exporters a rebate at 17% on various garment items, followed by 7.5% in India and 11% drawback on export of readymade garments in Bangladesh, he added.

PRGMEA spokesman has urged the Ministry of Textile, Ministry of Commerce and Ministry of Finance to immediately hold a meeting with industry stakeholders and come up with a workable solution to secure competitiveness of woven garment industry in global trade.

Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA)

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