Textile quotas had become hurdle in the growth of textile sector and both government and genuine exporters are now fully prepared to play their dynamic role in the quota-free international markets, said Tasneem M Noorani Federal Commerce Secretary here on Monday.
Addressing cloth exporters in the office of All Pakistan Cloth Exporters Association (Apcea) here, he said that textile industry has come out of the initial preparatory phase.
Most of the textile units have replaced old machinery with latest technologies, he said, and added that at this stage the quotas are impeding its further growth. "It is in this context that the government is opposing any further extension in quota regime," he said and remarked that it was actually opposing quota mafia and those involved in the export of low quality textile products.
The exporters would take few months to adjust themselves in quota-free markets, he said, and added that it would be an opportunity for them to capture world markets only because of their quality and cost-competitiveness.
He said that developed countries would be in a position to use labour, and social security compliance as a tool against developing countries like Pakistan. "There will be requirement of the social compliance to some extent but most of the importing countries might abuse these compliance's to restrict imports from developing countries."
Commenting on labour problems, the Commerce Secretary said that this is a provincial subject. However, 22 institutions have been trimmed to 8 and their functionaries have also been instructed to limit their visits to the industrial establishments.
About 4000 tons exceptional flexibilities quota from European Union, Noorani categorically said that EU would take up this issue on September 14-18 and on its availability the ministry would be in a position to distribute it among the Apcea members whose 987 tons compensatory quota was still pending.
He also discussed the issue of Turkish quota and said that a special emissary would be sent very soon as Turkish response was very lukewarm.
He said that the problems of delay in payment of freight subsidy, issuance of special businessmen passport to exporters and SRO 554 would be resolved in consultation with the concerned departments.
In his address of welcome, Apcea Chairman Ahmad Kamal said that industrialists of Faisalabad have made huge investment in plant & machinery. They have developed the small market town of 19th century into 'textile capital' of the country and now is geared up to take the challenges of the new world trade order through transformation from export of raw material to export of value-added textiles. "We can proudly claim that we have one of the best manufacturing facilities in textile sector in the world today", he added.
He said that Pakistan would be exposed to fierce competition with its regional competitors "as we are heading towards an era of free trade" in the post-quota regime. "We need your wisdom and expertise in putting our economy on track so that we can be cost-efficient to survive in the new world trade order", he added.
Underlining the problems being confronted by exporters, he said that social compliance would be a major threat to Pakistan's exports. "Our labour laws are so complicated that it is not possible to fulfil the requirements." He suggested a committee of exporters and concerned agencies under the supervision of EPB to make them acceptable in the fast changing world scenario.
Kamal said that India is a huge market for wider width fabrics used for home furnishing. "We should try to negotiate reasonable tariff structure for these goods for Indian market," he said and added that this breakthrough could help Pakistan to increasing exports to India.
He said: "Exporters of Faisalabad are enterprising, hard working and honest businessmen; we assure that with the support of the govt we shall bring prosperity and growth to our country."
Earlier, chairing a meeting of the steering committee of 'Garment City', Noorani said that the government wanted to set up only 'Model' garment cities, which could be replicated by private sector to establish a chain of garment cities to fully exploit the available export potential of textile sector.
He also discussed various complications and asked the steering committee to complete its initial formalities to ensure early establishment of the 'City'.
Mukhtar Ahmad Sheikh, co-ordinator of steering committee of Faisalabad 'Garment City', briefed the Secretary about the measures taken to form private limited company to undertake the project.
Comments
Comments are closed.