PRGMEA Chairman urges govt to implement pro-textile policies

19 Jul '11

3 min read

Chairman Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) North Zone Mubashar Naseer said Monday that factors like a shift in orders from increasing costly China, much-likely trade concessions from the European Union and the recovery in the world economy demand a pro-textile industry approach of the government policymakers.

He was addressing the Executive Committee members of PRGMEA North Zone on his return from abroad.

Chairman PRGMEA said the woven garment industry is Bangladesh has registered 42 percent growth in exports this year due to the factors. The Pakistan woven garment industry exports have also leapt about 40 percent during 2010-11 and more is very much likely subject to the friendly attitude of government policymakers, he added.

According to him, the government should release drawbacks of the value sector under the 'Drawback on Taxes and Levies Order, 2009 Scheme', commonly known as DLTL scheme. Also, he stressed in the same breath that continuation of DLTL Scheme during 2011-12 to sustain growth in country's exports should also be ensured by the concerned policymakers.

It may be noted that for the first time in the country's history that the Government came out with a textile policy, proposing to sanction drawbacks worth Rs 17 billion for 2009-10 fiscal and Rs 27 billion for the 2010-11 fiscal.

The former Finance Minister Shaukat Tarin and Ex-Minister for Textile Industry Rana Muhammad Farooq Saeed Khan had given assurance on several occasions that the DLTL Scheme would not be withdrawn before the expiry of the Textile Policy 2009-2014. However, these promises have not been kept and this has belied the trust of the exporters. Also, it has made it impossible for the exporters, who are struggling to attain the export target of US$ 25 billion, to withstand competition in the world market. The textile export target of US$ 25 billion has been fixed by the Ministry of Textiles and is to be achieved by 2014.

Chairman PRGMEA North Zone said the government has so far paid only 14 percent against the claims for 2009-11 while deferring rest of the claims. He said the value added exports registered an increase in exports by 32 percent in value terms and 36 percent in volume terms.

Mubashir feared that fresh orders from the foreign buyers may be shifted to Bangladesh and China in case the government does not come up with an incentive to attract the buyers. A discontinuity of the 'Drawback on Taxes and Levies Order, 2009 Scheme' is not in the interest of the value industry, he added.

Chairman PRGMEA North Zone said only a proactive and friendly approach of Ministry of Finance, Ministry of Commerce and Ministry of Textile Industry should avail international market environment conducive to growth of woven garment industry ahead and facilitate the exporters by all means and ways. Otherwise, he feared, the Bangladesh woven industry would replace Pakistan in exports of woven garment soon.

Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA)

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