Hailing the federal budget for the fiscal year 2014-15, textile manufacturers-cum-exporters on Tuesday hoped that the incentives proposed in the annual financial plan would help grow the apparel sector. Commenting on the fiscal budget announcement by Finance Minister Ishaq Dar, Pakistan Apparel Forum's (PAF) Chairman Javed Bilwani said that what we wanted from the government for the garment sector has been proposed in the budget.
He said the government showed its priorities towards the ailing value-added textile sector. He hoped that the incentives would trigger a big turnaround in economic activities, besides giving boost to apparel exports. Bilwani, however, appealed to the government to abolish sales tax on the export of apparels.
"It is good the government announced continuing the DLTL facility, slashing the refinance rate, and allowing duty-free import of textile machinery," he said, adding that the government would be requested to form a committee for the garment sector and the proposed body should meet once in a month to discuss all the major and minor issues being faced by the exporters.
All Pakistan Textile Mills Association's (APTMA) Chairman Yasin Siddik also lauded the fiscal plan for 2014-15, saying that the cut in refinance would help provide 'cheap' finances to export-oriented textile sector. On duty-free textile machinery import, he said that the government's move would help attract new investments in the sector, besides triggering industrial growth in the country. He, however, hoped that the government would consider the textile industry's demand of keeping the sales tax static at existing two per cent.
"Sales tax should be kept unchanged at two per cent so that the industry can benefit from the proposed budgetary incentives," he said, adding that the budgetary propositions for textile sector would help rejuvenate the entire ailing sector. Terming the textile sector 'mainstay' of the country's exports, he said a 'meaningful' export promotion policy would be required for the development of this sector.
He said the government will provide the value-added textile sector with a Long Term Financing Facility (LTFF) for up-gradation of technology through State Bank of Pakistan at a rate of nine pc for 3 to10 years. Pointing out that the facility whereby the textile sector has been enjoying duty-free import of machinery under textile policy 2009-14 would end June 30, 2014 (SRO-809), he demanded of the government to extend the facility for another two years so as to take full advantage of the GSP plus status.
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