The Federal Textile Ministry and the All Pakistan Textile Mills Association (APTMA) are on the same page so far as the growth of textile industry is concerned. A strong bond between the sides is likely to develop in near future, especially if the Federal Textile Ministry toes the amendments suggested by the APTMA in the proposed Textile Industry Act, 2010 in true letter and spirit.
This spirit of harmony and co-operation was fully exhibited by the two sides in recent interaction where the Federal Textile Minister Rana Farooq Saeed, along with his team from ministry, visited APTMA and listened to the amendments suggested by the APTMA in the proposed law.
Chairman APTMA Gohar Ejaz has summed up his members' input very simple and straight by appealing the Federal Textile Minister to avoid restrictive measures and instead be a facilitator in regulating the industry once and for all. According to the APTMA guidelines, the federal government should take all steps leading to removal and elimination of all tariff and non-tariff barriers in the import and export of raw materials by all sub-sectors of the textile industry in order to facilitate access to raw materials to all subsectors, encourage and promote value addition and to protect domestic industry from unfair trading practices.
The APTMA has further advised the ministry to facilitate import and procurement of raw materials required by different segments of the textile value chain, which shall include facilitation of unrestricted maintenance of stocks and inventory by textile units.
The proposed Textile Industry Act, 2010, it may be noted, has stressed otherwise. It proposes that the federal government, on the advice of the Board, may impose restrictions on procurement of raw materials required by different segments of textile value chain, which may include restrictions on stocks to be maintained by textile units/enterprises.
The APTMA has also suggested that the levy of a cess on textile manufacturers, dealers of textiles and textile allied industry in Pakistan should not exceed an amount equivalent to 1% of the annual turnover. However, it added, the federal government may exclude for a given period of time, any small and medium enterprises segment from application of the cess. All proceeds of this cess would form a part of the Textiles Industry Development Promotion and Standards Fund.