Federal Minister for National Food Security and Research Sikandar Hayat Bosan on Monday said that decision regarding the announcement of textile package for the industry would be taken at the highest level after having thorough consultations with ministries of Textile, Finance and Commerce, adding that his ministry would also give its input accordingly.
He was talking to media after having a meeting with All Pakistan Textile Mills Association (APTMA) President (Punjab) Aamir Fayyaz and other office-bearers here at APTMA House. Responding to APTMA concerns, the federal minister assured of taking them up at the federal level. He also urged the Association to join hands with the government on the front of cotton research to meet industry demands in future.
He underscored that industry, the farming sector and government would have to work as a team to achieve this great task. He also assured the APTMA office-bearers of his full support in resolving their problems pertaining to his ministry.
Sikandar Hayat Bosan ruled out any issue of food security, citing that Pakistan has surplus stocks of wheat, rice, corn, sugar and other commodities.
He said the country had a bumper crop of maze with regard to per acre yield and as whole production in the region, adding that corn yield was also very high this season. Though several crops, including gram, were affected due to low rate of rains and other environmental factors in the country, crops production would improve as rains expected next month, he maintained.
Bosan mentioned that 'Plant Breeders Rights Bill' and 'Seed Amendment Bill' had recently been passed in the parliament, terming it a major breakthrough in the agriculture sector as it would enable the private sector to also conduct crops research at its own that would not only help to improve overall agri produces in the country but also lead to increase in industrial exports.
To a question, he said the government tried to ensure payment to farmers and growers for their produces in accordance with international price and when compared to past years, the cotton growers received comparatively better prices of their produces this year. No doubt, prices of different commodities were depressed not only in Pakistan but also in the world, however, the government made every effort for ensuring better rebate to growers.
APTMA President (Punjab) Aamir Fayyaz said they wanted to increase textile sector's exports from US $ 12 billion at present to US $ 20 billion by year 2020.
In his detailed presentation on existing state of affairs of the textile industry, Chairman APTMA said a failure of the cotton crop production has resulted into the failure of textile industry in Pakistan.
He said the utilisation of domestic produced Cotton is always the first priority of the industry. However, a drop in cotton production has left the industry with no option but to procure cotton on a price higher than the import parity, he added.
High cost of doing business has already rendered textile exports uncompetitive. The shortage of raw material has added fuel to the fire. Apprehending large scale closure of spinning mills due to the shortage of raw materials, Chairman APTMA urged the federal minister to withdraw incidentals, ie 4 percent customs duty and 5 percent sales tax, on import stage from 1st of January as agreed upon and announce the export led growth package to overcome high cost of doing business.
"There should not be any sort of restriction on the import of cotton as long as the shortage of cotton persists in the country," he added.
He said the data up to 15th December 2016 suggests that total cotton production would not be more than 10.5 million bales as against the industry requirement of 14.5 million bales. "Already, the industry consumption has been dropped from 16 million bales to 14.5 million bales due to closure of mills."
He said the government should take steps on war footing basis to increase cotton production in the country by facilitating the farmers.