The textile associations requested the government that in order to devise medium to long- term plan for textile sector, it has to consider a number of recommendations such as reduction in tariffs by withdrawing tariff rationalization surcharge, GIDC and importantly disparity in gas prices across Pakistan, sales tax & customs refunds and extending zero rating facility to packing material and power looms. However, they failed to get any assurance from the government for reducing electricity and gas prices, but were assured for expediting process to release the duty drawbacks under the PM package at the earliest.
The meeting discussed multitude of issues being faced by the export industry and the facilitation given by the federal government. Representatives of textile associations appreciated the federal government for providing policy and budgetary facilitations to textile industry, which has resulted in increase of textile exports in comparison to previous year.
The federal minister for commerce and textile informed the meeting that the government has allocated Rs 14 billion till date for the implementation of Phase-I of the Prime Minister Package of Incentives. It was further revealed that against the claims of Rs 21.5 billion, Rs 9.8 billion were disbursed to exporters while process of clearing more claims are under process. Sources said that Rs 4.5 billion are still available with SBP, but exporters'' claims are under verification process and would be released after verification.
Sources further said that Rs 30 billion of exporters under the sales tax and Rs 7.5 billion under the customs duty refunds as of June 30 are still pending.
The federal minister informed the meeting that the ECC of the cabinet amended the PM Package to further facilitate the textile sector, and now 50 percent of the drawback will be provided without condition of increment, and remaining 50 percent will be provided if the exporter achieves an increase of 10 percent or more in exports during fiscal year 2017-18 as compared to fiscal year 2016-17.
To further facilitate the exporter and diversify the market, an additional 2 percent shall be allowed for exports to nontraditional markets - Africa, Latin America, non- EU countries, Commonwealth of Independent States and Oceania. The minister also informed that relevant notification order has already been issued by the Textile Division.
The state minister for commerce and textile informed the meeting that short-term policy measures should be taken on priority basis, especially rationalization of energy prices, to provide further facilitation to textile sector.
The federal minister requested the associations to diversify markets by accessing non-traditional markets for which the government is also providing facilitation. He further requested the associations to encourage new investment feasibility studies and come up with proposals for social and environmental compliance, skill development, research and development, product and market diversification.
He said that preparations for the GSP+ review are excellent and in this regard all the federal and provincial departments are on board and very well prepared. He highlighted various efforts of his ministry to ensure smooth review. He directed the secretary Textile Division to immediately take up the matters with ministries and departments concerned and also asked the secretary food security to examine the cotton imports procedure and early issuance of Plant Breeders Right Rules.
He further said that government has taken bold steps to reduce cost of doing business and in this connection this meeting has been called to finalize the proposals of the textile sector and then he would take up these matters with the prime minister to provide a platform for the development of this largest manufacturing sector of Pakistan.
The meeting was also attended by the secretary Textile Division along with secretary Ministry of National Food Security and Research, and senior officers of Textile Division, Commerce Division, Ministry of Industries and Production and Finance Division. The chairmen and senior representatives of member textile associations like All Pakistan Textile Mills Association (APTMA), Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA), Pakistan Textile Exporters Association (PTEA), All Pakistan Textile Processing Mills Association (APTPMA), Towel Manufacturers Association (TMA), All Pakistan Bedsheet and Upholstery Manufacturers Association (APBUMA), Pakistan hosiery Manufacturers Association (PHMA), Pakistan Carpet Manufacturers and Exporters Association (PCMEA), and Pakistan Bedsheet Exporters Association (PBEA) also participated in the meeting.
Copyright Business Recorder, 2017