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Pakistan's DTRE scheme affects apparel and textile exports
02
Sep '13
The procedure of Duty Tax Remission for Exports (DTRE) in Pakistan is complicated to the extent that only few of the value-added textile sector companies benefit from the scheme to increase the country’s export volumes.
 
The whole process of imports as well as audit under the DTRE system takes a minimum of 26 weeks in Pakistan, as a result of which the country has never been able to cross the figure of US$ 16 billion in textile exports despite producing own raw material, reports The Nation.
 
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Central Chairman Sajid Saleem Minhas said if the new Government makes the DTRE scheme practical and simple, exports of value-added textiles sector could be enhanced manifold as production cost would be minimized sharply.
 
Mr. Minhas also suggested that apparel industry should be allowed to import fabric under the SRO 492 Scheme, as the weaving industry of Pakistan is not being able to fulfill the present domestic apparel demand.
 
The PRGMEA chairman said that the country’s garment industry mainly comprises of small and medium scale units, which are better off in producing high-end fashion products, as the order sizes remain small. However, due to the current import policies they fail to utilize their full potential, he added.
 
PRGMEA former chairman and chief coordinator Ijaz Khokhar said that small trims that carry no commercial value should also be made duty-free to avoid delays and problems with customs. 
 
Exports of the textile sector could also improve due to the expected GSP Plus (Generalized System of Preferences) status from EU as lower import duties will make domestic products more competitive, he added.
 

Fibre2fashion News Desk - India


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