Finance Minister Shaukat Tarin on Saturday underlined the need for effective measures and revised strategies by the government and private sector to ensure high GDP growth. The country needs high economic growth for catering to unemployment and to improve income level of the people, the minister said while speaking at a seminar titled "Five Year Textile Policy and Its Implementation," organised by Engro Polymer and Chemicals Limited here.
Among others, Central Chairman, Pakistan Hosiery Manufacturers and Exporters Association and Senior Vice-President Karachi Chamber of Commerce and Industry (KCCI), Muhammad Jawed Bilwani, Chairman KATI, Mian Zahid Hussain, Patron-in-Chief of KATI, S M Muneer, President National Bank of Pakistan, Syed Ali Raza as well as some members of the diplomatic corps were present.
Tarin said that for high GDP growth, new machinery/equipment and modern technology would have to be placed in our industry besides skill development of the manpower. He said last year Pakistan's 2 percent growth was due to agriculture. He said, however the economic indicators were improving.
Foreign Exchange Reserves have crossed $14.3 billion, stock exchanges are functioning well, Pakistan's credit rating is now better and inflation is coming down. He said the textile industry has the largest share in the country's economy in terms of employment, taxes and exports.
Tarin said the Cabinet Committee, led by him, would be monitoring implementation of textile policy. "I have full faith in textile entrepreneurs to make best use of textile policy and bring real change in this industry," he said. Federal Minister for Textile Rana Muhammad Farooq Saeed Khan said the first-ever textile policy of the country was an effort to pursue the vision and philosophy of his leader Shaheed Mohtarma Benazir Bhutto who had described textile industry as the backbone of the country's economy.
In 1988, she had also extended maximum possible support and facilities to the textile industry. This five-year policy actually will take care of textile industry for the next 15 years, he said. Federal Secretary for Textile, Dr Waqar Masood highlighting the salient features of textile policy said the centrality of textile in economy demands special attention.
Textile is a long chain - from cotton growing to finished textile goods. We have to find imbalances in the chain, he said. China earns $4000 per cotton bale and India $2000 per bale, whereas Pakistan earns only $1,000 per bale, he informed. Federal Advisor on Textile Industry, Dr Mirza Ikhtiar Baig said during the process of formulating this policy, he personally had meetings with all the textile associations throughout Pakistan.
He said the policy has come into effect from September 1, 2009. The relevant SROs have been issued for new duty drawbacks, that is, 1 percent on fabric, 2 percent on home textile, 3 percent on garments. Also 2.5 percent reduction in Export Refinance Mark-up and 5 percent interest disbursement on long term outstanding loans upto August 31, 2009.
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