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Pakistan textile sector urges govt to form GSP+ Cell
Dec '13
The Pakistani textile industry has urged the Government to establish Generalized System of Preferences Plus (GSP+) Cell, in order to fully utilize the duty-free access to the European Union (EU) and earn foreign exchange.
The proposal was part of various demands raised by the leaders of six leading value-added textile sectors during a meeting with the Minister of Textile and Commerce Engr. Khurram Dastgir Khan, recently held at the Pakistan Hosiery Manufactures Association (PHMA) House.
According to textile industry leaders, Pakistani exports would be facing stiff competition from 58 countries already enjoying GSP+ status and hence Pakistani products should be most competitive to fully avail free market access.
Muhammad Amjad Khawaja Chairman Pakistan Hosiery Manufacturers & Exporters Association (PHMA), told reporters after the meeting that the Minister assured textile sector representatives during the meeting, that various irritants and differences in harmonized code and refund issues would be settled before the new year to harvest the fruits of GSP+ status.
The Minister has assured that refund claims of sales tax / Duty Drawback of Local Taxes & Levies (DLTL) Scheme and synchronization Harmonized Code, Employees' Old-Age Benefits Institution (EOBI) and Social Security issues should be resolved on top priority basis before the start of 2014, he added.
At the meeting, the leaders complained that long delays in payment of different refunds by the Federal Board of Revenue (FBR) often causes liquidity crunch for export trade who have to compete and ensure timely delivery of export orders.
Zia-ur-Rehman Choudhary, PHMA north zone vice chairman said GSP+ status is a healthy sign for textile sector of Pakistan positive results could be attained only if the government ensures uninterrupted power and gas supply to industrial sector, especially textiles enabling the exporters to fulfill the foreign demands easily.

Fibre2fashion News Desk - India

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