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'Textile Industry Act 2011' to assess strength of Pakistani industry
Nov '11
Pakistan's Ministry of Textile Industry has invited suggestions and comments from various stakeholders on a draft 'Textile Industry (Development, Promotion and Standards) Act 2011'.

The Textile Ministry will hold a final round of discussion with the stakeholders in the coming days and the draft is expected to be finalized by November-end. It would be subsequently tabled in the National Assembly.

According to the Ministry, the Act is aimed at development, promotion, regulation and setting of standards for textile industry in Pakistan to achieve sustainable growth, employment generation, increased productivity and value-addition throughout the textile chain.

Explaining the pros and cons of the draft Act to fibre2fashion, Mr. Ijaz Khokhar, Chief Coordinator, Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA), said, “The main aim of the Textile Ministry behind introducing the draft is to assess the strength of the country's textile industry by acquiring exact data on how many companies are registered, what is their man-power, etc.”

“Another reason is for the upgradation of the industry and to have an efficient law for cotton trade. The draft envisages establishment of a Textile Board consisting of representatives from both the private and public sector, who will review the results on a quarterly or monthly basis,” he added.

Mr. Khohkar informed, “Previously there was no interaction between the stakeholders and the Ministry. So, this law will bind both the private and public sector and hold a meeting for the promotion and implementation of the policies and to monitor the developments that are taking place.”

He stated that the general reaction among the country's textile industry towards the draft is mixed, mainly because some additional taxes are being implemented through the Act. “They have proposed to charge a 1 percent tax on textile manufacturers, dealers of textiles and textile allied industry in Pakistan,” he revealed.

The textile industry is not in favor of paying any additional tax as they are already paying a lot of taxes, including cotton cess, education cess and textile engineering cess. “We do not want the textile industry to bear any additional tax which is not applicable to export of other goods of Pakistan,” he affirmed.

However, the PRGMEA Chief Coordinator was hopeful that the stakeholders would be able to convince the Ministry officials for withdrawal of the one percent tax.

Fibre2fashion News Desk - India

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