Federal Minister for Commerce, Makhdoom Amin Fahim on Tuesday announced formulation of 'task force on market access for textile industry'. I have announced (formulation of a) task force and its mechanism would be announced later on, he said while addressing the Managing Committee of All Pakistan Textile Mills Association (Aptma).
Fahim said Chairman Aptma would be taken on board as far as the constitution of the task force is concerned. He admitted the fact that the textile industry is the main source of economy and is facing problems. The industry needs government's support, he said at the very outset of his address.
He assured that the government would not hesitate in going out of way to help the industry. According to him, the industry's problems are spread over a large spectrum, involving a proactive role of the ministries of textile and water and power. He said in the same breath that the government is struggling hard to overcome textile industry's problems.
The minister mentioned that he presented a three-year trade policy for the first time in the country, saying he was in favour of a five-year trade policy in order to provide policy continuity to entrepreneurs. On Free Trade Agreement, he said his ministry has made sincere efforts to break the ice as European Union has provided a corridor of opportunity, choosing 75 items for duty free entry. He informed that government is preparing itself for pleading its case in the WTO before the final decision and expressed 'hope for good'. He added that his ministry is also supportive of zero duty on yarn export.
Regarding the developments on Reconstruction Opportunity Zones (ROZs), Fahim said he is quite hopeful about the outcome of negotiations with the US despite a snail pace progress on legislation on the issue. On the occasion, he proposed holding of monthly meeting between the ministry and Aptma.
Earlier, Chairman Aptma Gohar Ejaz delivered his address and pinpointed that the textile industry is contributing 32pc to the GDP. China's textile industry, on the other hand, is contributing 49 percent to the GDP, helping the economy grow at a rate of 10 percent annually, he added.
He further said Aptma is ready to support the government and wants to be a part of the policymaking on duty free access and other similar issues. According to him, 'a strong lobby is against free market access for Pakistan' and there is an urgent need to activate stakeholders against such lobbies. He added that Aptma can play role in this regard.
Highlighting Aptma's role in job creation and investment, he said textile industry performed superbly in last two years but energy and market issues are hampering its growth. He urged the minister to trust entrepreneurs and they would rise up to government's expectations. He urged the minister to bridge the gap between the policymakers and entrepreneurs in the larger economic interest of the country.
Chairman Aptma pointed out that the industry is facing highest mark up in the world and it is becoming difficult for the industry to survive. "We need your support," he stressed. He said the government should help government in reinvesting in textile by announcing incentives and support. "We will perform," he said, adding, "The textile industry has made long term investments until 2004 due to favourable policies but now, we are scared to investment as viability of exporting industry no more there." "Textile industry can not export inflation," he maintained.
Ejaz said government is not allowing import of cotton through Wagha border, a restriction entirely understandable. He, however, criticised National Tariff Commission for Anti Dumping Duty on Polyester Staple Fibre. Chairman Aptma Punjab, Ahsan Bashir, Chairman Sindh, Yasin Siddique and leading textile tycoon from Khyber-Pakhtunkhwa, Mohsin Aziz also spoke on the occasion and called for policy continuity.