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Hard work follows unveiling of Textile Policy - PRGMEA
17 Aug '09
13 min read
Indigenization:
Promotion of joint ventures with leading international brands will be a key objective of the policy. Government will provide appropriate incentives to encourage such initiatives.
Training and awareness campaigns will be initiated to disseminate information on comparative benefits of upgrading machinery and using domestic resources.
Viability studies for production of textiles dyes, chemicals and accessories will also be initiated.
Development of indigenous dyes and chemicals will certainly help in bringing the product costs down and would help in creating more jobs besides widening the narrow industrial base of Pakistan. It has yet to be seen what steps the government will take in order to develop this sector.
Support Program for women and handicapped:
It is proposed that EOBI and social security contributions of such persons will be also be picked up by the Government.
This is really a positive step as it will encourage more women to join the textile sector. This will also help in improving our stitching capabilities as currently majority of men in Pakistan are stitching machine operators.
Immediate Measures:
Priority in Gas and Electricity Load Management:
It is declared that textiles industry will be exempted from load-shedding of power and it will enjoy the same priority in gas allocation as given to fertilizer sector.
It has yet to be seen how this step will actually be implemented as Pakistan is currently facing the worst energy crisis in its history. Just by declaring textile industry as a priority will not solve the problem as there is acute shortage of electricity and natural gas allover Pakistan.
Export Refinance at lower Rates:
The export refinance will be available at 5%.
This is certainly a welcome step as interest rates are currently very high and the industry is not availing loans facility from the financial sector.
Relief on Existing Long Term Loans:
Long term loans will be converted on the same pricing as applicable to LTTF scheme, together with a grace period of one year on both existing and converted facilities, without the facility of refinancing.
This is also a positive step as a lot of units have closed down because they cannot pay the interest in the current conditions. The government and the financial sector needs to implement this policy ASAP which will help in reviving the closed units.
Restructuring and Reorganization of the Textile Sector:
Those textiles units which are suffering from the general market slump but are otherwise technically viable will be helped through transitional support - in the form of loan restructuring, interest rate relief, relaxation of prudential regulations, additional financing, investment tax credit etc. Others that lack technical viability would be encouraged to merge with sounder units.
Promotion of joint ventures with leading international brands will be a key objective of the policy. Government will provide appropriate incentives to encourage such initiatives.
Training and awareness campaigns will be initiated to disseminate information on comparative benefits of upgrading machinery and using domestic resources.
Viability studies for production of textiles dyes, chemicals and accessories will also be initiated.
Development of indigenous dyes and chemicals will certainly help in bringing the product costs down and would help in creating more jobs besides widening the narrow industrial base of Pakistan. It has yet to be seen what steps the government will take in order to develop this sector.
Support Program for women and handicapped:
It is proposed that EOBI and social security contributions of such persons will be also be picked up by the Government.
This is really a positive step as it will encourage more women to join the textile sector. This will also help in improving our stitching capabilities as currently majority of men in Pakistan are stitching machine operators.
Immediate Measures:
Priority in Gas and Electricity Load Management:
It is declared that textiles industry will be exempted from load-shedding of power and it will enjoy the same priority in gas allocation as given to fertilizer sector.
It has yet to be seen how this step will actually be implemented as Pakistan is currently facing the worst energy crisis in its history. Just by declaring textile industry as a priority will not solve the problem as there is acute shortage of electricity and natural gas allover Pakistan.
Export Refinance at lower Rates:
The export refinance will be available at 5%.
This is certainly a welcome step as interest rates are currently very high and the industry is not availing loans facility from the financial sector.
Relief on Existing Long Term Loans:
Long term loans will be converted on the same pricing as applicable to LTTF scheme, together with a grace period of one year on both existing and converted facilities, without the facility of refinancing.
This is also a positive step as a lot of units have closed down because they cannot pay the interest in the current conditions. The government and the financial sector needs to implement this policy ASAP which will help in reviving the closed units.
Restructuring and Reorganization of the Textile Sector:
Those textiles units which are suffering from the general market slump but are otherwise technically viable will be helped through transitional support - in the form of loan restructuring, interest rate relief, relaxation of prudential regulations, additional financing, investment tax credit etc. Others that lack technical viability would be encouraged to merge with sounder units.
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