Federal Minister for Textile Mushtaq Ali Cheema has ruled out any possibility of abolishing all taxes from textile sector, however, relief package for this vital sector would be announced before budget 2007-08.
While talking to newsmen after inaugurating the textile machinery exhibition here at the Fortress Expo Centre on Wednesday, Cheema said the government was looking into problems being faced by the textile industrialists. 'It was not possible for the government to withdraw all the taxes from textile sector because it would create manifold issues,' he said.
When his attention was drawn towards possible 50 percent closure of the spinning industry, if no immediate relief is announced, the minister said there may be some problems at individual levels and the government was closely monitoring the situation.
About possibility of duty-free import of cotton from India, Cheema said the government was considering the demand despite the fact that the farmers and ginners had strong reservations over it.
He said the spinning sector was vying for an early relief to match the production cost levels of the competitors and a comprehensive plan on the possible way out has been submitted to the government. The industry was expecting a relief package by the start of 2007, however, no such development has taken place so far.
Federal Secretary Textile Industry, Masood Alam Rizvi, Chairman Pakistan Readymade Garments Manufacturers and Exporters Association, Ijaz Khokhar and Chief Organiser of the exhibition, Ahmad Masood were also present.
About All Pakistan Textile Mills Association's demand seeking import of cotton from India via Wagah border, he said the government would have to keep in view the interests of the farming community while taking decision in this regard.
Referring to earlier package of Rs 25 billion announced last year for textile industry, the minister said it never happened in Pakistan's history that any such huge relief package is announced in such a short period. He said more pragmatic steps are in the pipeline to provide relief to the textile sector and the ministerial committee would soon meet in this regard.
About the exhibition, he said it would provide an opportunity to the Pakistani textile industry to have first hand knowledge about the advancements in the field of textile machinery and other accessories.
The exhibition will conclude on January 26. It is being participated by 42 companies both foreign and local, dealing in textile, garments, leather machinery and accessories.
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