No planning or development, whatsoever, is possible without the help of carefully prepared authentic statistics. But, as ill luck would have it, no such authentic statistics for the textile industry are available with the textile sector except the ginning and spinning sectors.
The Statistics Division should, therefore, be made to "pull up their socks" and prepare authentic statistics in close collaboration with all the stakeholders, including SBP, which may be got duly computerised.
SOPHISTICATION OF TEXTILE MACHINERY Pakistani manufacturers and exporters of textiles have succeeded in manufacturing top class fabrics, made-ups and garments with the help of imported machinery and spares, which are second to none in respect of quality and workmanship.
Following additional measures are solicited in this regard:
(i) The present rate of mark-up on the import of new and reconditioned textile machinery and spares may be reduced to 6%.
(ii) Sophisticated textile machinery and equipment may be got manufactured in Pakistan on joint venture basis in collaboration with renowned and reputed multinationals, which may also be exported to international buyers.
AGGRESSIVE MARKETING An ambitious export target for textile export for the current financial year has been fixed by the government, which can be achieved only through aggressive marketing. We wish to suggest the following corrective measures in this regard.
(i) The Export Promotion Bureau may be revamped and its activities and performances may be monitored by regional/provincial/central advisory committees wherein adequate representation may be given to the textile exporters.
(ii) Sufficient funds may be allocated for organising industrial exhibitions and trade fairs and outgoing trade delegations within Pakistan and abroad. Funds for this purpose may be dished out from E.D.F.
(iii) Selection, training and posting of Pakistani Commercial Counsellors/Secretaries abroad may be done in consultation with FPCCI, regional Chambers of Commerce and Industry and trade organisations, while their postings and promotions may be tagged with promotion of export trade between Pakistan and the country of their posting.
INPUT COST
(i) Prices of Sui gas and electricity are being enhanced time after time, which has rendered our products uncompetitive in the domestic as well as international export-market. OGRA and NEPRA may, therefore, be precluded from enhancing the prices of gas and electricity during mid-term, especially for the textile processing units.
(ii) Long-range measures may be adopted for augmenting the production of gas, such as, import of gas from adjoining friendly countries. Likewise, the production of hydel power may be enhanced through opening of Kalabagh and Bhasha Dams expeditiously.
(iii) Rationalisation of Import Duty on Caustic Soda: Caustic Soda (Liquid, Flakes and Solid) is an important ingredient for the Textile Processing Sector, which is partly imported and partly manufactured in Pakistan. Two local manufacturers of Pakistan have managed to get a "protective duty' of 25% on Caustic soda Flakes and 150% on Liquid which has rendered its import uneconomical although the normal rate of import duty on other chemicals ranges from 5 to 15%. It is, therefore, suggested that the rate of import duty on Caustic Soda may be brought at par with other textile chemicals and reduced to 5%.
SPECIAL INCENTIVES SOLICITED: Ironically enough, Bangladesh, which is a non-cotton growing country, has surpassed Pakistan in almost all sectors of textile production and export. This is so, because the Bangladeshi government has provided a number of attractive and lucrative incentives to their textile entrepreneurs on the pattern of EPZ, which are just not available in Pakistan.
Bangladeshi entrepreneurs are enjoying income tax holiday for 10 years while there is no such tax holiday in Pakistan but we have to pay 1 to 1.5% income tax. In Bangladesh the import of textile machinery plant, equipment and spare parts, is duty-free, but this facility is not available in Pakistan. In BD, the rate of electricity charges is 2 taka (Rs 2.70) which in Pakistan is Rs 5.00 per unit.
The minimum wage in Bangladesh is 900 takas (Rs 1,215) which in Pakistan is Rs 5,000. There is no social security, E.O.B.I., labour welfare fund and education cess in Bangladesh, while in Pakistan there are more than 22 agencies dealing with these labour levies.
In Bangladesh, there is no turnover tax, or E.D.F., while in Pakistan we have to pay turnover tax and EDF despite loss. Likewise, there is no sales tax or government gratuity in Bangladesh, but in Pakistan we have to pay sales tax on packing material and furnace oil for generators, besides government gratuity.
In view of these vast disparities, it is strongly recommended that similar facilities and incentives may also be provided to Pakistani Textile Entrepreneurs enabling them to keep a firm stand in the international market.
HUMAN RESOURCES DEVELOPMENT The All Pakistan Textile Processing Mills Association had established a well-staffed training institute in Karachi for the training of "Dye Masters" and other supervisory staff on self-help basis. But we had to close this institute after about a decade as it had been located in a rented building which the owner got vacated through court order.
In view of the dearth of trained textile staff in the country it is suggested that requisite incentives be provided to the entrepreneurs in the private sector and State land be provided to them for the purpose, either free of cost or at concessional rates on long-term lease basis.
ENVIRONMENTAL PROTECTION In view of the importance of environment protection, the government of Pakistan had promulgated the Environmental Protection Act 1997 through an Act of Parliament. But its implementation had to be deferred due to a number of practical difficulties and impediments.
There appears to be some activity in parliamentary circles for revision and revival of the Act. It is, therefore, suggested that, prior to revival of the Act, all the concerned stakeholders may be duly consulted. The crux of the matter is that all the schemes and projects should be based on local conditions and resources.
TESTING LABS Our association has been successfully running a testing laboratory in Karachi in collaboration with the government of Netherlands for testing of eco-label status since nearly a decade. We need some assistance from PCSIR and the Ministry of Higher Education so that our test Reports may be universally acknowledged.
(The compiler is Chairman, All-Pakistan Textile Processing Mills Association.)
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