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| Textile policy receives mixed reactions from sector | | August 18, 2009 (Pakistan) |  |
 The Federal Minister of Pakistan last week, announced the first ever five year textile policy which among many measures to revive the textile sector in Pakistan, envisages enhancing the exports from the sector from the current US $10 billion to $25 billion within the next five years.
Giving his views on the textile policy, Mr Ghulam Rabbani, Director of Karachi Stock Exchange and a cotton trader of repute said, “The textile sector hails the announcement of subsidies and incentives worth Rs. 42 billion in the fiscal of 2009-10. The policy also ensures uninterrupted power and gas supplies on priority basis to the industry”.
He continued, “Mark up rate has been reduced to 5 percent for export re-financing by allocating Rs. 2.5 billion. Another relief for textile industry is the allocation of Rs. 5 billion for the long term loans as well. The increase in duty draw back from 1 to 3 percent will help boost exports of textiles as well”.
Mr Mukhtar Ahmad Sheikh, Chairman of Faisalabad Garments City was very pleased with the announcement of the policy and commented by saying that, “We are very glad that for the first time in history, a policy has been announced for the textile sector”.
He added by saying, “Textile Industry is the biggest industry in our country and we welcome this step. The government collects 11 percent as duty drawback from the industry, but has not returned the full amount as per the Textile Policy, still we are happy”.
Mr Aamir Butt, Director (Marketing) of Fashionwear (Pvt) Ltd, was expecting some more sops from the textile policy and said, “Duty draw back should be enhanced to 4 percent for the whole sector on uniform basis and apart from exemption of load shedding, electricity should be supplied at subsidized rates to remain competitive in global markets”.
“All R&D cases either time barred or pending should be settled at 100 percent rate and all Govt taxes like SESSI, EOBI and Education cess must be exempt for two years. Implementation of textile policy must be monitored strictly and all inputs particularly, dyes and chemicals must be at zero rated particularly dyes & chemicals”, he concluded by saying.
| | | | Fibre2fashion News Desk - India | |
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