Inordinate delay in the approval of new textile policy is depriving textile sector of its due benefits, besides causing serious apprehensions and uncertainty in the major export-oriented sector. Voicing concern over the undue delay in approval of new textile policy, Sohail Pasha, Chairman and Rizwan Riaz, Vice-Chairman of Pakistan Textile Exporters Association (PTEA) said the government announced several schemes like complete settlement of all outstanding refund claims, rationalisation of refund regime, drawback of local taxes on 10 percent increase in annual exports, establishment of Exim Bank, duty free import of textile machinery and reduction of mark-up rate for export refinance in the budget 2014-15 as integral part of the new textile policy, but in the absence of any textile policy; the sector is not getting benefits from these schemes to improve its efficacy. They said that funds of Rs 80 billion were earmarked in the federal budget for textile package; however, after a lapse of six months, these schemes could not be implemented. They said that textile policy is being awaited because the different incentives could help exporters as only announcement of the package alone would not do the trick. PTEA Chairman Sohail Pasha was of the view that Pakistan has failed to take full advantage of the trade concessions given by the European Union under the GSP Plus scheme because of lack of support from the government. Previous textile policy, expired on June 30, 2014, failed to meet the envisaged textile exports target of USD 25 billion, which is currently no more than USD 13.5 billion, he said, adding that main reasons behind the failure of the policy was non-implementation of different initiatives due to short releases of funds as the government discharged only Rs 26.75 billion against the commitment of Rs 188 billion. Schemes like 1 percent additional drawback on 15 percent increase in annual export could not be implemented. Moreover, ambitious export target was fixed without giving due thought sluggish industrial and trade business environment and other problems which remained unachieved. Rizwan Riaz said the government had failed to encourage investment in the textile sector during last five years whereas competitors made huge investments due to the positive and business friendly environments. Rivals, taking advantage of the situation, are creeping into our traditional markets throwing Pakistani textiles out. Less increase in exports than non-GSP Plus India is not a good omen, as Indias extraordinary surge in exports reveals the support of their government. PTEA demanded that government should concentrate upon some truly visionary steps and address genuine concerns of the industry with innovation and extraordinary solutions in the upcoming textile policy. They further demanded immediate approval and implementation of textile policy for next five years.
Posted on: Tue, 27 Jan 2015 06:11:21 +0000
Trending Topics
Recently Viewed Topics
© 2015