Interviews
APTMA proposes measures to improve Textile & Garment sector
25 Jan '08
3 min read
1. Duties on the import of all sorts' fabrics including cotton fabric, accessories etc need to be removed immediately and the procedure to so needs to be simplified. No bonds, DTRE, SRO 465, SRO 1065 etc. Just a simple customs forms should be filled out and evidence of order in terms of L/C or buyers P.O. should suffice.
2. R&D Support to garment sector should be increased in view of the R&D given on the export of dyed fabric to various countries.
We are supplying our competitors with fabric at a 3% subside as compared to the local Garment exporter. The net increase of this additional subsidy will be very small as this fabric will be converted locally.
3. Energy costs need to be rationalized and brought down for the garment sector. The cross subsidy to fertilizer sector needs to be reduced.
4. EOBI & SES should be totally eliminated. The companies should provide these services to their workers via private sector insurance companies. This approximately costs half of what it currently costs the manufacturer.
This will provide a relief not only in monetary term to the industry but also result in better worker protection and effective use of these funds.
Furthermore, the small entrepreneur will not have the hassles of dealing with the government departments which encourage under the table dealing on such matters. Disclosure of employees will increase and the unemployment number will go down thereby benefiting the government.
5. SBP,s LTF EOP was an excellent incentive to modernize the textile industry in that it encouraged upgradation of the manufacturing facilities.
The scheme was discontinued abruptly, leading to huge loses to the industry in the shape of doubling if financial cast of expansions that were planned on this assumption, the facility should therefore be reinstated with the increased scope of including civil works as well.
2. R&D Support to garment sector should be increased in view of the R&D given on the export of dyed fabric to various countries.
We are supplying our competitors with fabric at a 3% subside as compared to the local Garment exporter. The net increase of this additional subsidy will be very small as this fabric will be converted locally.
3. Energy costs need to be rationalized and brought down for the garment sector. The cross subsidy to fertilizer sector needs to be reduced.
4. EOBI & SES should be totally eliminated. The companies should provide these services to their workers via private sector insurance companies. This approximately costs half of what it currently costs the manufacturer.
This will provide a relief not only in monetary term to the industry but also result in better worker protection and effective use of these funds.
Furthermore, the small entrepreneur will not have the hassles of dealing with the government departments which encourage under the table dealing on such matters. Disclosure of employees will increase and the unemployment number will go down thereby benefiting the government.
5. SBP,s LTF EOP was an excellent incentive to modernize the textile industry in that it encouraged upgradation of the manufacturing facilities.
The scheme was discontinued abruptly, leading to huge loses to the industry in the shape of doubling if financial cast of expansions that were planned on this assumption, the facility should therefore be reinstated with the increased scope of including civil works as well.
Pakistan Readymade Garments Manufacturers & Exporters Association
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