National Textile Policy to be declared soon
Dr Mirza Ikhtiar Baig
Recently 'National Textile Policy' has been finalized after the meeting with chambers and textile associations of Faisalabad and Lahore on Wednesday.
Mian Muzaffar Ali, President Lahore Chamber of Commerce and Industry, Tahir Javaid Malik, Senior Vice President, Irfan Iqbal Sheikh Vice President, former Presidents Shahzada Alam Mannoo, Iftikhar Ali Malik and Mian Misbahur Rehman were present during the meeting.
Dr Mirza Ikhtiar Baig, Advisor to Government of Pakistan, Ministry of Textile Industries, told Fibre2fashion.com few important agendas were taken up during this meeting.
Reduction in Mark Up: Banks are charging highest spread of 7.7 percent between their average deposit and lending rates. State Bank should ensure spread should not be more than 4 percent as per International practice which will help to reduce the bank's lending rates by 3.5 to 4 percent.
The gas supply and the power rates to the industries: MD Sui of Northern Gas met APTMA officials on December 17, in Lahore to work out strategy for the supply of gas to the industries especially in winter. With regard to higher power rates, utility companies should be given task to reduce their 30 to 40 percent TND losses (theft). These unsold power units are eventually charged to honest consumers by increasing their rates by utility companies.
R&D Support to Textile: After signing of the agreement with IMF, R&D support considered as subsidy, is not allowed. Dr Baig said, “However, we are proposing and working on enhanced rates of duty drawback to the exporters and allowing duty and tax refund on the inputs which were not allowed before like power, gas, diesel, furnace oil and on petroleum products which are not considered as subsidy for duty drawback.”
Market Access to EU and USA: On the instruction of the Prime Minister and President of Pakistan, “I am working on getting duty free market access on export of Pakistan textile products to EU. I have already met Ambassadors of Italy, France, Netherlands, UK, Turkey and Germany and they all assured their support for allowing duty free export of our textile products to EU. I am leading a delegation of the top textile exporters immediately after New Year to muster support of EU member countries for the EU market access before our meeting with the EU Trade Commissioner in Brussels, Belgium.
“We are also taking up the matter with USA Government to allow duty free export of our textile products made out from the imported USA PIMA cotton. Pakistan is the largest importer of USA long staple cotton to the tune of $400 million to $500 million every year. USA has already allowed Latin American countries for duty free re-export of textile products to their market made from US cotton. We demand similar facility to be extended to the Pakistani exporters on export of our textile products made from US imported cotton.”
Reconstruction Opportunity Zones (Rozs): The bill for ROZs is already in advance stage in US Congress and after the taking over of the new administration, hopefully it will be announced.