First quarter allocation for Textile Ministry: Finance fails to release Rs 10 billion

The Finance Ministry has failed to release Rs 10 billion allocated for the first quarter of the current fiscal year for the Textile Ministry. Federal Minister for Textile Rana Muhammad Farooq Saeed khan told the National Assembly Standing Committee on Textile here on Friday, which met with Haji Muhammad Akram Ansari in the chair to brief on the new textile policy.
The minister due to financial constraint, the Finance Ministry was not able to release the allocated amount of Rs 10 billion for the first quarter, and added the State Bank of Pakistan would release the amount soon to the Textile Ministry.
He said that China was importing cotton yarn from Pakistan as its own crop had been damaged, adding the local spinners had formed cartel in the country as they were exporting more, ignoring the demand of local industry, causing price hike in the local market. The minister informed the committee that the meeting with the All Pakistan Textile Mills Association (APTMA) had been called on October 27 to discuss the cotton production and export.
He warned that the ministry would take action if steps were not taken to control excess export of the cotton yarn. " We want textile industry, the major foreign exchange contributor through exports, to be value-added," he said. To avoid shut down of industry in winter, the problem of gas load management should be resolved with the Sui Northern Gas Pipeline Company (SNGLP) to keep the textile export at reasonable level, he said.
Federal Textile Secretary Dr Waqar Masood Khan said that legislation was under way to register non-registered units, and added that only the registered units would be facilitated from Textile Export Support Fund (TESF). The Secretary informed the committee that the ministry had not signed agreement with Monsanto; however it would be do the needful soon. He said that Rs 45 billion would be required to fully implement the new textile policy.
The committee appreciated the first and foremost effort of the government to announce the best textile policy in the country, and recommended that problems of labours, as well as short-comings like non-availability of gas, electricity, yarn and thread should be removed with the guidelines of the members of the Standing Committee and following the slogan, "we want trade no aid."
The committee also recommended that the facilities of gas and electricity should be given to the small and big industrial units in the country to promote the textile industry.
The committee further recommended that representation of the small Industrial units in the association should be made at the district level. The committee also recommended that fine quality seed at cheaper rate for growing cotton should be provided to the growers and producers to get the best production of cotton. The committee, however, expressed concern over government's inability to control the pesticide companies, and suggested having check and balancing on the pesticides industry.