Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has criticised the federal government for its indifferent attitude towards the demand for continuation of 3 percent drawback of local taxes and continuation of DLTL scheme to sustain growth in country's exports.
The PRGMEA spokesman on Wednesday said that the woven garment exports had registered about 40 percent growth during 2010-11. The DLTL scheme had proved a lifeline for the woven garment industry and a halt to it would result in closure of woven garment units, leading to export of raw material from the country without value addition, he added.
The spokesman said that the stitching industry was highly labour-intensive and the emerging textile economies like Bangladesh and Vietnam had registered stellar growth simply by supporting this industry. He feared that the government's indifferent attitude towards the value added woven garment industry would translate into heavy unemployment with the closure of garment units.
PRGMEA spokesman said the DLTL scheme had improved the bargaining position of the woven garment exporters, likely to be affected with discontinuation of it, as it would push the cost of doing business up against the country's competitors. PRGMEA spokesman urged the Ministry of Textile, Ministry of Commerce and Ministry of Finance to immediately hold a meeting with industry stakeholders and come up with a workable solution to secure competitiveness of woven garment industry in the global trade.
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