MONDAY JANUARY 03: Wahgah border: MoC urged to ensure cotton, PSF import from India

ISLAMABAD: The All Pakistan Textile Mills Association (Aptma) has urged the Commerce Ministry to ensure import of all types of cotton and polyester fibre (PSF) from India through Wahgah border, official sources told Business Recorder.
Recently, Commerce Minister Amin Fahim had visited Lahore where he was apprised about the issues faced by the country's textile sector, which is one of the major foreign exchange earners of the country.
Aptma, which is an influential body, compelled the government to revise its gas load management plan for 2010-11. The Association supports free market for trade in textiles across the entire value chain. No short-term policies should be framed to disturb trade and industry structure, it argues.
However, other associations of the textile sector say that they are being deprived of their rights due to Aptma's influence. The Association made the following submissions: (i) cotton production in Pakistan is invariably lower than industry consumption. Due to restrictive measures imposed by India, shipment of contracted cotton is deliberately delayed; (ii) ensure import of all types of cotton and PSF from India through Wahga border; (iii) due to extreme shortage of PSF it should not be subjected to any import duty at all and all man-made fibres including viscose be zero-rated; (iv) import of PSF is also subjected to anti-dumping duty for past four years. Meeting of all stakeholders Aptma/PSFMG be convened to resolve the issue; (v) United States and the European Union (EU) be urged to provide market access to Pakistan textile products. Private sector in Pakistan including Aptma should be taken on board in respect of the efforts being made to seek market access; and (vi) urge the State Bank of Pakistan (SBP) to provide a special line of credit for industry at competitive interest rates for further investment and export to all sub sectors of the textile value chain from yarn to garments and made-ups.
Sources said that Aptma maintains that the government should constitute a task force on market access and Aptma, as a major stakeholder, must be part of the task force.
Another major demand of Aptma was that no duty/export quota or any other restraints on export of yarn and other textiles be imposed so that free market mechanism is the long term policy. This demand would raise concerns amongst garment manufacturers, who will mount an opposition if the government moves in this direction.
APTMA also wants representation on board/committee or fund of the Ministry of Commerce and its allied departments or independent institutions, including TDAP, TCP, SLIC, EDF, etc.
Prime Minister Secretariat has already written to all concerned Ministries to take FPCCI and Aptma on board in economic-related decision making process. The Ministry of Commerce, sources said, has also been requested to ensure withdrawal of anti-dumping duty on the import of PSF, which is currently 40 percent for industry's consumption. Ministry of Commerce in this respect should discuss the matter with NTC and also hold joint meeting with Aptma APTMA and PSF manufacturers group.
"Th matter relating to doubling of turnover tax from 0.5 percent to 1 percent be taken up by the Commerce Ministry with the FBR," sources quoted Aptma Chairman Gohar Ejaz as having requested the Commerce Minister. Sources said that the Ministry of Commerce would hold monthly meetings based on agreed agenda for resolution of trade and industry issues in the larger interest of exports. The first meeting in this respect would be held in the 1st week of January in Islamabad.
Aptma has urged the Commerce Ministry for diversification of export mix to zero rate customs duty on manmade fibers, other than PSF including Viscose staple fibre. And recommended that customs duty on the import of sizing material and PVA be withdrawn, and exports must be zero rated. Duty on the import of spares and machinery for textile industry should also be brought down from wherever it is imported.