Non-implementation of textile policy measures hindering exports

Non-implementation of textile policy measures announced eight months ago, is hindering the exports, causing sloth in industrial productivity and credit crunch for exporters. This was stated by Azhar Majeed Sheikh, Chairman standing committee on exports, Federation of Pakistan Chamber of Commerce and Industry and Chairman, Khurrianwala Industrial Association.
Drawing attention of the Federal Minister for Textile Industry Rana Farooq Saeed Khan towards the dire situation confronting the textile exporters, in a communication here Monday, he said that the first ever textile policy of the country was announced on August 2009.
The policy was widely hailed by all sectors of textiles across the country as progressive and realistic providing incentives and support to textile sectors. Export refinance at lower rates at 5 percent, relief in existing long-term loans, restructuring and reorganisation of the textile sector, drawback of local taxes on, processing Fabrics 1 percent, home textiles, 2 percent and on garments 3 percent of FOB value of exports were the main measures announced in the policy, he said.
However the above mentioned policy decisions announced in the policy have yet to be implemented, he explained. Azhar Majeed said that Textile industry was facing depression and stagnancy since last three years continuously and this sector was now passing through severe crisis of its history and struggling for survival. Textile exporters are facing financial crunch due to high interest rates, blocking of huge funds in duty drawback and sales tax regime.
Deprived of the cash flow, the exporters were unable to sustain their export turnover resultantly the industrial production has significantly fallen down which in turn caused decline in exports of textile products, he argued.
World economic meltdown coupled with innumerable adverse factors, such as rising cost of doing business, shortage of gas and electricity and their escalating prices and worsen law and order situation in the country have also badly affected the industrial activities, he said. Rival countries in the region realising the world economic meltdown impact have buttressed their textiles with massive doses of subsidies and supportive measures, he said.
Azhar Majeed said that textile was the baseline of Pakistan's economy, but due to distorted priorities this base was gradually being eroded and the industry and exports were being crushed. He demanded the government to set its priorities right and accord preferential treatment to textile sector and save the industry and the economy from collapsing. Immediate implementation of the measures announced in the policy would alleviate the cash flow crunch and facilitate its competitive position in the international market, he said. He fervently requested the government for immediate urgent implementation of textile policy measures.