Value-added textile sector: 10 percent RD won't push up cost of doing business: APTMA

All Pakistan Textile Mills Association (APTMA) Wednesday dispelled the impression that imposition of 10 percent regulatory duty may increase the cost of doing business of value-added textile sector. Addressing a press conference at APTMA House, Tariq Saud Chairman APTMA said that imposition of 10 percent regulatory duty on the Indian yarn import will not hurt the domestic value-added textile sector and they can continue to import cheap yarn under DTRE scheme.
"We will not allow India to disturb Pakistan's economy and the textile industry by dumping its products in our country and all efforts will be made to discourage unplanned import of yarn and other textile goods from India," he added. He claimed that its members, having some 80 percent share in the textile exports, are supporting the government move as they believed that Indian policies are directly hurting Pakistan's economy and industries.
He said India has imposed some 28 percent duty on the import of cotton yarn in order to curb imports from Pakistan, while there was only 5 percent duty on the import of yarn from India. Tariq said besides cotton yarn, APTMA has discussed all issues being faced by the textile industry and the federal government has assured it to resolve pending issues including removal of electricity surcharge and Gas Infrastructure Development Cess for captive and processing use and zero rating of textile exports.
"The federal government has assured that it will consider withdrawing GIDC and surcharge imposed on power after a meeting with the International Monetary Fund (IMF)," he added. APTMA has convinced the federal government how India is dumping its goods in Pakistan, he said and added that the federal government has realised the situation and assured full support towards this end.
He revealed that the federal government is also working on an anti-smuggling package for the domestic industry and the official announcement is expected next month. Chairman APTMA said the textile industry, representing almost all the sub-sectors from yarn manufacturers to garments manufacturers, is grateful to the government for its timely and wise action.