Textile sector wants separate power tariff slab

ANWAR KHAN

KARACHI: Manufacturers-cum-exporters want the government to spare the textile sector from cost of the subsidy given to fertilizer sector, saying that such subsidies should be paid from the national exchequer rather than from a specific private sector.

Besides, they demanded of the government to introduce a separate energy tariff slab, different from the general manufacturing sector, with a view to making this sector more competitive with diversification of products against the key rivals at global markets.

They said that the power and gas shortage hit over 50 percent of the sector, bringing its output capacity to a huge stagnation besides the high tariff of these key utilities, despite the value-added textile sector's over 80 percent production are exported.

They said that the government should announce a separate energy tariff for the apparel textile sector with a view to enabling it to survive amid global competition. They also demanded exemption the textile sector from its share in the cost of the subsidy being given to fertilizer sector of the country.

They also wanted the government to solve the pending research and development support claims of which Rs1.7 billion was still outstanding with the central bank against genuine claims of value-added textile manufacturers-cum-exporters. They pointed out that the government had allocated Rs5.4 billion for research and development support programme in the maiden textile policy 2009-2014.

They also proposed that the textile ministry should have the control of export development fund, saying that for the textile industry's financial requirement its concerned ministry would have the funds to help it overcome problems in need. "From the EDF funds relating to textile sector, the ministry will be able to spend required amount for proper lobbying towards duty-free access in the US, EU and other developed countries," they said.

They also reiterated their demand for release of Rs17.2 billion of refund which the government had taxed under the textile policy for different schemes. They said the industry needed these funds immediately to survive their existence or the present financial turmoil would hit them to permanent closures.

They showed concerns over diminishing of the labour force in the city due to kidnapping and target killings, saying that labourers including female were fleeing from the city or avoiding working in factories for the persistent poor law and order situation.

They said there was also fear of huge decline in the number of existing workforce of the city, and the manufacturing sector would run out of the key production contributors, if the trend continued anymore.