The Export Promotion Bureau (EPB) has spurned action on a request by the Towel Manufacturers Association (TMA) for a further financial grant of over Rs 17 million for expansion of the SMA Rizvi Textile Institute in Korangi Industrial Area.
EPB Chairman Tariq Ikram, addressing the meeting of the board of governors of the institute on Tuesday, said that any further grant from the Export Development Fund (EDF) would depend on a performance audit report.
He advised the EPB Skill Development official to arrange a performance audit of the institute.
The condition of the audit has been laid down by the EDF board after complaints of misappropriation of the government money, granted for setting up technical training institutes by various exporters associations.
The institute board of governors' Chairman, S.M.A. Rizvi, welcomed the EPB Chairman, and informed him about the progress of the institute, which had trained about 115 students in various textile trades and were quickly absorbed in the industry.
He said that the funds were required to construct a second floor on the building to introduce the courses, equivalent to BSc and MSc, for which the curriculum had been approved by the University of Karachi.
Advocating for the grant of additional fund from the EDF, the TMA members said that under international rules, fees only contributed to the extent of 34 percent of the total expenditures.
They contradicted the EPB chief's estimates that the towel sector contributed only 300 million dollars to the total exports, and said that the total towel exporters' share was 600 million dollars per year.
The latter, however, made it clear that allocation of the funds from the EDF was not on a sectoral basis, but could be utilised in the development of infrastructure for the textile industry as a whole.
Tariq Ikram praised the role of the institute in not only imparting skills to the industry workers, but also helping them in getting instant jobs.
He advised the textile institutes to avoid duplication in training courses and should set up a committee, which assessed skill needs of the textile industry for the next five years.
He advised the management of the TMA institute to focus on the present facilities to make the institute a world class training place instead of going for the extension.
He said that a policy had been laid down by the government, which required 50 percent contribution from the private sector for any grants made by the government.
The technical institutes set up, depended purely on grants by the EDF, should generate income not only to meet their running expenditures, but also finance plan for the expansion, he added.
Tariq Ikram visited the library of the institute, and regretted that it had no up-to-date issues of the world famous textile magazines.
The EPB chief also asked questions about the balance sheet presented at the board meeting, which showed duplication in some heads of expenditures, made under administrative expenditures, operational expenditures.
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