Government urged to unveil 'bailout' package for textile industry

Khawaja Muhammad Younas Chairman of All Pakistan Bed sheet and Upholstery Manufacturers Association (APBUMA)'has urged upon the government to immediately unveil the bailout package of Rs 170 billion for textile industry. In a statement issued here on Tuesday Khawaja said that Prime Minister Mian Nawaz Sharif was going to take a far-reaching step by announcing a package of Rs 170 billion to meet the global recession and to check the falling exports.
Kh Younas that the value-added textile industry would welcome the PM decision of textile package only when it is implemented in real shape. "We hope Prime Minister will fulfil its commitment to restore the confidence of the exporters. If concrete measures were not taken timely, it would be useless after the collapse of industry," he added.
He appealed Prime Minister to accept responsibility for controlling the free fall of textile exports and immediately release of textile package. Few months back, the PM assured for Rs 170 billion relief package for the textile exporters but still not implemented due to unknown reasons, while other side every passing day is crucial for the industry at a time when export has been constantly declining, chairman APBUMA said.
Giving the reference of media reports, Khawaja Muhammad Younas said that Government to grant three percent rebate on Yarn and grey fabrics, six percent on knit wears, four percent on home textiles and 8 percent on garments. Khawaja M Younas has sent a SOS call to Prime Minister Mian Nawaz Sharif to save the value added sector of Textile Industry by making early payment of refund claims according his commitment and implementation on relief package. Khawaja Muhammad Younas said that they are unable to meet the demands of foreign buyers due to financial crisis. Our competitors like Bangladesh and India were exploiting this situation while we are losing the ground.
He said that cost of production has further increased due to 36 percent increase in gas tariff. Now our business was not viable and we can't compete India, Bangladesh, Taiwan, Malaysia, Indonesia and Thailand etc. He said "Pakistan's exports dropped by 13 percent, as total exports dipped to $15.6 billion in the first nine months of the outgoing fiscal year from $17.9 billion a year ago, a drop of $2.3 billion." He said that higher cost of production and in competitiveness also hurt our exports.