Textiles Minister Mushtaq Ali Cheema met on Friday a high-powered delegation of the value-added textile industry to discuss the issues concerning decline in exports in some sectors, particularly knitted garments.
Dr Mirza Ikhtiar Baig, Chairman Cotton and Textile of FPCCI, gave a presentation to the minister, saying that textile industry was facing global competitiveness particularly from regional countries-China, India, Bangladesh and Sri Lanka-which have shown phenomenal increase of exports in the post quota regime.
From January 2005 the textile exports of China increased by 50.49 percent, India 39.59 percent, Sri Lanka 27 percent, Turkey 27 percent, Jordan 26 percent, Bangladesh 16.5 percent whereas Pakistani exports after January 2005 only increased 7.23 percent.
Ikhtiar Baig elaborated that it is the global competitiveness as well as local high cost of doing business which has resulted in loosing of our market shares. He particularly mentioned the high power and gas and manufacturing cost. "Bangladesh gas rates are 1/3 of Pakistan and power rates about 2 Takka per unit only."
Ikhtiar Baig recommended concessional exports financing with level playing field regarding other industrial inputs cost. He also requested the minister to resolve the pending refund of the sales tax of textile units supplying locally in the market. He also informed Cheema about the technology up-gradation of funds scheme (TUFS) of India giving subsidies and cash grants to the investors.
The meeting was also attended by the ministry secretary Masood Alam Rizvi and Textile Commissioner. From the private sector Bashir Ali, Gul Ahmed MD, Nasim Sattar, Ali Abid Textile Mills, Anwar Tata, Tata Group, Aziz Memon, Kings Group, Bilal Mula, Chairman Pakistan Garments Association and Saqib Bilwani were present.
Mushtaq Cheema also discussed with the visiting delegation the extension in the period of utilisation of the stock in the sales tax return.
He requested the delegation to provide a comparative study of the manufacturing cost in India, China and Sri Lanka and Bangladesh to take up the matter with Prime Minister.-PR