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PRGMEA recommends renewal package for textile sector
Nov '10
Ejaz Khokhar – the recently elected central Chairman of Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has recommended a renewal package which includes limiting the prices of utilities for industry, removal of Export Development Fund (EDF), immediate collection, elimination of taxes together with the Reformed General Sales Tax, special mark up rate as well as unobstructed flow of raw materials to the textile auxiliary industry.

The Chairman apprehended that the continuing difficulty would, or else, lead to large-scale shutting down of textile units thereby causing widespread unemployment in the country. The auxiliary textile industry, mostly, the woven and knit apparels, has given 3.6 billion dollars to the national exchequer over the financial year 2009-2010 against the target 5 billion dollar set by the government. The auxiliary textile industry having 1,500 manufacturing units and a total workforce of 25 million direct as well as indirect laborers has registered considerable losses during the outgoing financial year.

According to him, the woven apparel units have registered a loss of 25 percent towards the end of 2009-10 in the midst of high cotton prices locally and cost-effective commitments to customers globally. The basic textile industry along with the spinning sector registered a profit of 25 percent during the fiscal 2009-10 with unexpected rise in the prices of cotton and yarn.

Ejaz revealed that spinners are the frontrunners of the industry. The association had efficiently followed the government the previous year to limit the export of yarn from Pakistan, which had failed drastically this year. At present, neither the Pakistan Hosiery Manufacturers Association (PHMA) nor the PRGMEA is emphasizing on the last year's stand of limiting the free export of cotton and yarn from Pakistan.

Fibre2fashion News Desk-India

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