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Value-added textile exporters seek govt help to reopen closed units
Sep '11
The Government has been called upon by the value-added textile producers-cum-exporters to help reopening of the industrial units that have ceased operations.

The Government has been urged to further assistance by way of export development fund and also to hire lobbyists in the US and the EU to press their case for earning a duty free access for Pakistani textile goods in these countries.

At a meeting with the National Assembly's Standing Committee on Textile Industry, the producers-cum-exporters of value-added textile products sought that the Government should allow a differential energy tariff slab to the textile industry, rather than charging them at par with other domestic manufacturing sectors.

The Standing Committee gave an assurance to the value-added industry representatives that all possible support would be extended, and a meeting of Secretaries of Petroleum, Finance and Commerce Ministries and all other stakeholders would be held to voice the industry's concerns before the National Assembly when its session begins on September 12.

Pakistan Hosiery Manufacturers and Exporters Association (PHMA) stated that the Government should immediately release PKR 23.4 billion in refund to the value-added textile producers to support the industry that is ailing after being badly hit by unparalleled rise in cotton prices last year.

Pakistan Apparel forum (PAF) stated that in spite of repeated requests to the concerned authorities to release the significant sum of local duty drawback refunds promised under the Textile Policy 2009-14, the Government has been withholding the same for the last two years.

According to the Pakistan Knitwear and Sweaters Exporters Association, such withholding of entrepreneurs' money by the tax authorities is forcing many small units to cease operations due to lack of working capital, but still the Government is not taking the issue seriously.

The Association stated that the fall in cotton prices may cause textile exports, which grew by 35 percent to US$ 14 billion during last fiscal, to fall below US$ 10 billion during current fiscal. This has led the industry to suffer substantial losses and eventually the banks would have to bear the consequences, it added.

Fibre2fashion News Desk - India

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