The value added and basic textile sectors have mostly welcomed the first five-year textile policy recently announced by the government, but they observe that its success depends on its implementation in letter and spirit. A leading bedwear exporter and chairman of APBUMA, Syed Muhammad Asim Shah said the duty drawback of three per cent on exports for the clothing sector would help the sector overcome the impact of global recession.
He termed the reduction in refinance rate to five per cent as a positive step, however, he said it was not clear whether the service charges of banks were included in the subsidy on mark-up. Over the offer of one per cent additional duty drawback on 15 per cent increase in exports, he said no major exporter would benefit from that concession.
He said the five per cent mark-up rebate on upgrading technology was also a positive step, but much would depend on its implementation. He said Rs 5.4 billion earmarked for the payment of pending claims of research and development grant would clear dues of exporters, but no timeframe had been set for the purpose.
Pakistan Powerlooms Association Secretary General Khaliq Qandeel Ansari said the results would depend on the implementation of the policy. He said some of the incentives might not yield positive results and might lead to pilferage or wastage of money like the establishment of warehouses abroad as importing countries were reluctant to even grant visa to Pakistanis and they might not allow warehouse facilities due to terror threat.
Regarding the funds allocated for the training of workers, he said the existing training institutes had not delivered desired results. "The huge amount may be misused." Qandeel Ansari said the policy gave the priority to the textile industry in the supply of power and gas, but mills had received notices for a cut in gas supply in the coming winter.
He said the mills already running on 100 per cent capacity would not be able to get one per cent additional rebate on increase of 15 per cent in exports. The fund for technology up-gradation, he added, would be wasted as it would not be possible to install new equipment in view of ongoing electricity power and gas shortages. Another clothing exporter, Mian Mughis Sheikh said the textile policy had covered every aspect of the trade but no concrete steps were announced as many things were unclear.