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PCF demands conducive environment for textile export sector
08
Oct '10
A Pakistan Cotton Forum (PCF) meeting held to assess post-flood cotton crop situation, largely attended by the agriculture scientists and officials from Agriculture Extension besides representatives from respective organizations at the APTMA (All Pakistan Textile Mills Association ) Punjab office.

Chairman PCF Seth Muhammad Akbar presided over the meeting, attended by Chairman APTMA Gohar Ejaz, Director Farmers' Associate Pakistan (FAP) Farooq Bajwa and Karachi Cotton Association (KCA) Dr Zafar Hassan.

The PCF represents the cotton value chain from production, processing, trade and consumption of cotton. The meeting unanimously agreed to a consensus on the prospects of cotton crop for the season 2010-11 at 11.5 million bales.

The participants also agreed to the fact that the cotton crop may increase in size if favourable weather conditions continue and timely availability of all inputs including water to the major cotton growing non-perennial areas from Chashma Jhelum Link Canal.

Participants of the meeting also condemned the proposed withdrawal of zero rating of the textile industry across the value chain under the Reformed General Sales Tax (RGST). The participants feared blockage of Rs100 billion of the industry for refund/adjustment throughout the year. They said the textile industry was already facing liquidity crunch and it would be unable to lift cotton from farmers for manufacturing textile products. They said 80 percent of textile products are exported ultimately in one or the other form therefore any move of withdrawing zero rating exemption would lead to disruption of textile supply chain.

The meeting further resolved that no market intervention of any sort in textile value chain would be acceptable, as it has already caused dent to the timely viability, production and exports of textile industry.

The PCF urged the government to provide conducive environment to the entire textile industry value chain for smooth sailing of export-earning industry of the country.

All Pakistan Textile Mills Association


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