Home / Knowledge / News / Textiles / PEW says textile sector needs more incentives
PEW says textile sector needs more incentives
11
Jul '16
The Pakistan Economy Watch (PEW) has hailed the government's move to provide zero-rating tax regime for the textile sector but termed it insufficient in the current scenario.

In a statement issued, PEW President Dr Murtaza Mughal asked the government for more relaxations so that Pakistan could regain its position in the international market.

“The $14 billion textile industry which is playing a critical role in the national economy is crumbling due to multiple reasons, which warrant immediate government intervention,” he said.

He said that energy crisis, incoherent policies, regional competition, undue taxation etc.

had taken a toll on this industry that provided jobs to 3.5 million people.

He said that 57 per cent exports were linked to textile industry; its share in manufacturing was 46 per cent while it employed 38 per cent of the urban labour.

Mughal said that share of textile in the GDP was 9 per cent which would shrink creating problems for everyone, including tens of millions of farmers who depend on cotton crop, he added.

"Other countries are providing subsidies to their textile sector and frequently devalue currency to get a foothold in international market which has left local sector unattractive for investors," he said.

He also urged the government to review exchange and monetary policy and refund mechanism as textile sector was awaiting refunds worth rupees 1.10 trillion for a long time resulting in severe liquidity problems.

Mughal ended on an ominous note, warning that “around 33 per cent textile mills had been closed depriving one million people of their jobs and if the situation remained unchanged more bad news would follow.” (SH)

 

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 24th Sep 2016

GST Council sets exemption limit at Rs 20 lakh

The GST Council has decided to exempt businesses from the Goods and...

Apparel/Garments | On 24th Sep 2016

DGFT adds new service providers in EPCG scheme

Providing great relief to the job working units in garment clusters...

Apparel/Garments | On 24th Sep 2016

Niti Aayog kicks off Indian ecommerce policy review

A Niti Aayog committee set up for the purpose, held deliberations...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

Pinkesh Jain
Everflow Petrofils Ltd

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
September 2016

September 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search