KARACHI: The textile exporters of the country have suggested various measures to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) for the revival of sinking indigenous industry.
The round-table conference on the revival of textile sector, the largest industrial sector of the country, held here at the Federation House, formulated recommendations for the incoming Pakistan Muslim League (Nawaz) led Government aimed at increasing textile exports.
These should be made a part of the policy decisions by the new government during early days of its tenure, the businessmen emphasised.
Vice President FPCCI Gulzar Firoz chaired the conference, said a FPCCI statement here on Friday.
The FPCCI Vice President, while announcing the recommendations, said this conference of business people representing different sectors of the national economy.
That has emphasised that the government of Mian Muhammad Nawaz Sharif would have to strongly lobby in the European Union and the United States of America for extending additional market access to Pakistan and also to allow GSP-Plus facility.
He said that on the request of the exporters duty and tax remission on exports (DTRE) and drawbacks on local taxes and levies (DLTL) laws should be reframed.
That, the textile ministry should not be abolished but, if necessary, a strong textile division should be established.
That, commercial counsellors should be trained at FPCCI before their posting abroad and their performance report must be sent to the FPCCI every month.
That, zero-rating on five sectors of exports must continue. Gulzar Firoz said that security and energy issues were being faced by all the industrial sectors in the country and the new government should resolve these issues on a priority basis for economic growth.
Vice President FPCCI, Ms. Rukhsana Jahangir said that the SMEs sector was facing immense difficulties in availing bank financing.
She said that contamination free cotton should be produced instead of importing raw cotton.
Dr. Mirza Ikhtiar Baig, a leading textile exporter and former advisor to textile ministry, said that Pakistan was manufacturing all the world's top brands.
He said that this sector should be provided a conducive environment as the cost of manufacturing was rising by 25 percent in wages alone. Baig said that Pakistani textile products had better prospects considering more trade with India.
He also urged continuity of the textile ministry under the new setup. At least this should be made a part of a ministry headed by a federal secretary, he added.
Baig said that there should be no further tax burden on this sector and the government should impose taxes on those people who were out of tax net.
Former vice president FPCCI Dawood Jhakura said that due to security concerns foreign buyers of readymade garments were reluctant to place fresh orders.
He said that frequent protest calls by different political parties had not only damaged the image of the country but also hampered production activities.
He pointed out that recently Bangladesh had received notices regarding labour laws, which would jeopardise its US GSP-plus status. He urged the government to revisit the labour laws to avoid such notices.
Prominent exporter and former senior vice president Karachi Chamber of Commerce and Industry (KCCI) Hanif Lakhani from Lakhani Textiles stressed on product mix and suggested to increase the range of products.
He informed the participants that the government had announced rules of DTRE, under which raw material imports were exempted from liabilities.
He said that the Customs had stopped the facility on the argument that the scheme was only available for exporters having 100 percent manufacturing units
He requested the FPCCI to take a stand because the scheme was for all the exporters, even those engaged in value-addition.
Lakhani said that billions of rupees were stuck in shape of rebate of duty and local taxes despite clear instructions provided under the textile policy 2009-14 that the same should be cleared instantly.
Former chairman, Pakistan Bedwear Exporters Association, Naqi Bari said that the textile sector was the largest employment generation sector in the country which needs to be saved from disaster and it is high time to demand greater market access from USA.
He said that government should hire lobbyists in USA and EU for better market access to Pakistani goods. He warned that the country is going backward by exporting raw material instead of value-addition in textile sector.
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