Textile policy receives lukewarm response

Textile industry stakeholders are not optimistic about the textile policy (2014-19) export target of $26 billion. Talking to Business Recorder, the private sector stakeholders said the government has failed to ensure uninterrupted supply of utilities including power and gas under the new policy. The industry is currently operating at 60 percent capacity.
Stakeholders urged the authorities to review the policy and prioritise the export sector with respect to the provision of utilities as well as incorporating their (the industry's) proposals to make them more competitive internationally. They further emphasised the need to implement the policy in letter and spirit if the required targets are to be achieved including 100% increase in value addition from $1 billion per million bales to $2 billion per million bales over the next five years.
Ijaz Khokhar, chairman Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) claimed that Small and Medium Enterprises (SMEs), which account for 97 percent of the entire industry, have been totally ignored in the new policy. Khokhar said that it would have been better if incentives were given across the board. The scheme would have a limited value as the country's textile exports registered a marginal increase during the last year and only large groups could benefit from this scheme, he added.
The PRGMEA chairman further said that there is no aggressive marketing plan in the policy to attract foreign buyers. He said that the policy came after a delay of over seven months which deprived the industry of its due benefits. In such a situation achieving $26 billion export target in the next five years is next to impossible, Khokhar added.
S. M. Tanveer chairman All Pakistan Textile Mills Association (APTMA) said that textile policy was announced on Monday and the same day gas supply to the industry was suspended. The industry is facing uncertainty. He further said that the schemes like Drawback for Local Taxes and Levies (DLTL) announced in the new policy were also part of the previous policy. The government released only Rs 28 billion for the implementation of such schemes during the last five years against a budgeted amount of Rs 188 billion.
Pakistan Apparel Forum Chairman Javed Bilvani proposed amendments in the new policy to get the desired results. He said there is no protection to raw material in the policy. The government must give more incentives with respect to subsidies and utilities tariff to make it more competitive in the region.