FCCI seeks special bailout package for textile sector

27 Oct, 2015

President Faisalabad Chamber of Commerce and Industry (FCCI) Chaudhary Muhammad Nawaz has demanded special bailout package for the value-added textile sector to offset the ill impacts of 10 percent duty on the imports of yarn. In a meeting with the representatives of value-added textile sector, he said that the sector is the only sub sector of textile chain that is not only creating maximum job opportunities but was also contributing in a big way to earn foreign exchange.
He said that despite of energy crisis, non-payment of refund claims and complicated tax matters, this sector has given an excellent performance with three percent increase in its export during first quarter of this fiscal. On the other hand, all other sub-sectors of textile recorded 22 to 23 percent decline in its exports.
He said the government has given a special package to the spinners but the value-added sector has been over burdened by levying 10 percent duty on the imports of yarn. He expressed concern over unilateral decision of imposing duty without any consultation with the value-added sector and said that the entire textile sector has been put into trouble to save only spinners. He said the government should withdraw this regulatory duty before the start of protestation by value-added sector. He also demanded a bailout package for this sector so that it could overcome the ill impacts of energy crisis etc and improve its overall performance.
Continuing Chaudhary Muhammad Nawaz said that internal rift in the textile sector is only due to the non-availability of textile minister for the last six to seven months. There is no one available to protect the legitimate interest of the entire textile chain in the federal cabinet.
He said that non-availability of this minister is not only problematic for the textile sector but would also create problems for the government. He particularity lauded the contribution of former textile ministers from Faisalabad and said that Chaudhary Mushtaq Ali Cheema and Rana Farooq exploited their capabilities to safeguard the interests of this important segment of national economy. He demanded of the Prime Minister to immediately appoint a full time textile minister from amongst the MNAs of the Faisalabad which is known as textile capital of Pakistan.

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