Home »Cotton and Textiles » Pakistan » PM’s package: PRGMEA wants Rs 60 billion allocation

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  • May 23rd, 2017
  • Comments Off on PM’s package: PRGMEA wants Rs 60 billion allocation
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has urged the government to allocate at least Rs 60 billion for export-oriented industry in the upcoming budget 2017-18 under Prime Minister's Rs 180 billion package, besides releasing all stuck-up claims of the exporters, including DLTL, Customs Rebates and Sales Tax rebate, etc.

PRGMEA Central chairman Ijaz Khokhar, appreciating the Prime Minister Nawaz Sharif for announcing Rs 180 billion export-led growth initiative for the export sector of Pakistan, said his bold decision has started showing results, as the exports of value-added textile industry has now adopted upward trend at a time when all other sectors' exports continued to decline.

According to the spokesperson of the PRGMEA the Industry's revival package of Prime Minister has started giving some boost to the country's exports and if it is implemented in its true spirit and the issue of liquidity crunch is also resolved on an emergency basis the exports of value-added textile industry will enhance further despite tough competition with the regional countries.

Ijaz Khokhar asked the government to honour its pledge to clear pending tax refunds of exporters without any delay. Incentives will not be effective properly until Prime Minister takes ownership of exports till the next general elections as policy implementation is not seen anywhere, the PRGMEA Chief said. He stated the Prime Minister should appoint a full time minister for the textile industry as early as possible so that he could play proactive role. He demanded the government to introduce the liberal import policy for raw materials for re-export like duty-free import of fabrics and accessories which are not being manufactured in Pakistan. He appealed the government to take steps to discourage exports of raw material for the sake of finished clothing products in domestic and export markets.

"The government must discourage exports of raw material to facilitate the value-added textile and apparel sector which ranks as the largest employment generator in the country. "Emphasis must be put on job creation and value-added segments like apparel exports. At the same time, raw material exports must be dis-incentivized as they take jobs away from our country and create them in competing countries where they export raw material," he added.

PRGMEA vice chairman Jawwad Chaudhry said that the Value-added Textile export sector is the backbone of the economy with great potential for earning foreign exchange. It is the least energy and capital-intensive industrial activity and is thus well suited for Pakistan's resource endowment to generate economic growth and employment.

The Value-added Textile sector is the major tax payer, largest employment generator in the whole textile chain and exporting up to $5 billion textile products. Jawwad Chaudhry said that the high cost of doing business, energy shortages, myriad of taxes on exports, rising exchange rate, raw material shortages, and the divide between policy and its implementation have eroded the economic viability of the business. "We will continue to lose export share in the global market and textile sector may face closure in absence of consistency in policies and proper policy implementation."



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