Decline in textile exports irks Senate panel

The Senate Standing Committee on Textile Industry Friday expressed serious reservations over 14 percent decline in textile exports during the current year saying that such a situation predicts that the government would not be able to take full advantage of GSP + granted to Pakistan. The committee met with Mohsin Aziz in the chair where it was informed that textile exports during last nine months stood at $1.37 billion with 14 percent decline in overall textile-related products export.
The senators were of the view that non-existence of full-time minister contributed to decline in exports. They recommended the government to appoint full-time minister for textile sector as the development of whole economy depends on textile sector. Members of the committee said that GSP + facility will not give any incentive to Pakistan if the textile sector could not perform well. Non-provision of gas and power load shedding especially in Punjab was responsible for decrease in textile related products and its exports.
Briefing the committee about the ministry and its attached departments, Secretary Ministry of Textile Aamir Marwat said that Rs 15 million have been collected annually under Textile Cess, however, efforts were afoot to increase the collection. Chairman of the committee expressed serious concerns that despite assurance from government side to double textile export, the government failed to do so and in presence of GSP+ facility the textile export declined. Such a situation is of great concern for the policymakers of the country. The chairman expressed apprehension that if the situation remained the same, there is a possibility that the government may waste the GSP+ facility.
The committee also expressed serious apprehensions over short supply of gas have badly impacted Pakistan''s economy. Senator Hari Ram informed the committee that India provide subsidy on textile and wheat production but in case of Pakistan the situation is totally opposite. India increased its textile production three times during last 13 years however in Pakistan the increase in cotton production is very nominal.
Secretary Textile told the committee that since 2005, the government spent Rs 3.6 billion on Karachi Textile City but only land was acquired so far. He also told the senators that K-electric wants to establish coal-based power generation plant and acquired 200 acre land out of total 1,250 acres for Karachi Textile City.
Chairman of the committee suggested that the government may provide more incentives to Karachi, Faisalabad and Lahore textile cities and encourage small capitalists to invest there. The chairman also suggested for enhanced textile sowing areas and maintained stability in textile products. About Faisalabad Textile University, the committee directed that machinery in the university should be upgraded so that the engineers may get their training on these machines. The committee directed to provide details of Pakistan Central Cotton Committee (PCCC) Multan and Pakistan Cotton Standard Institute in next meeting of the committee.