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News Clips 11 February, 2015

[ Textile policy receives lukewarm response ]
[ PYMA for maintaining balance in cotton yarn prices ]
[ Spinning is the foundation process for all value added textile products – Government should strengthen Spinning industry of Pakistan ]

Textile policy receives lukewarm response   [ top ]

Business Recorder, February 11, 2015
Textile industry stakeholders are not optimistic about the textile policy (2014-19) export target of $26 billion. Talking to Business Recorder, the private sector stakeholders said the government has failed to ensure uninterrupted supply of utilities including power and gas under the new policy. The industry is currently operating at 60 percent capacity.

Stakeholders urged the authorities to review the policy and prioritise the export sector with respect to the provision of utilities as well as incorporating their (the industry's) proposals to make them more competitive internationally. They further emphasised the need to implement the policy in letter and spirit if the required targets are to be achieved including 100% increase in value addition from $1 billion per million bales to $2 billion per million bales over the next five years.

Ijaz Khokhar, chairman Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) claimed that Small and Medium Enterprises (SMEs), which account for 97 percent of the entire industry, have been totally ignored in the new policy. Khokhar said that it would have been better if incentives were given across the board. The scheme would have a limited value as the country's textile exports registered a marginal increase during the last year and only large groups could benefit from this scheme, he added.

The PRGMEA chairman further said that there is no aggressive marketing plan in the policy to attract foreign buyers. He said that the policy came after a delay of over seven months which deprived the industry of its due benefits. In such a situation achieving $26 billion export target in the next five years is next to impossible, Khokhar added.

S. M. Tanveer chairman All Pakistan Textile Mills Association (APTMA) said that textile policy was announced on Monday and the same day gas supply to the industry was suspended. The industry is facing uncertainty. He further said that the schemes like Drawback for Local Taxes and Levies (DLTL) announced in the new policy were also part of the previous policy. The government released only Rs 28 billion for the implementation of such schemes during the last five years against a budgeted amount of Rs 188 billion.

Pakistan Apparel Forum Chairman Javed Bilvani proposed amendments in the new policy to get the desired results. He said there is no protection to raw material in the policy. The government must give more incentives with respect to subsidies and utilities tariff to make it more competitive in the region.

PYMA for maintaining balance in cotton yarn prices   [ top ]

Business Recorder, February 11, 2015
Pakistan Yarn Merchants Association (PYMA) has stressed the need for maintaining appropriate balance in cotton yarn prices across the country vis-à-vis prices of cotton yarn imported from India by imposition of 15 percent regulatory duty.

Talking to media persons here on Tuesday Central Chairman Khalil Qaisar Shamas, Zonal Chairman Muhammad Akram Pasha and Zonal Vice-Chairman Adnan Zahid Butt said that value-added textile forum in its appeal to the government has wrongly included our name as the Association has many times stated that regulatory duty on import of cotton yarn from India should be subjected to 15 percent. They said that our demand was not outright ban on import of cotton yarn but only imposition of regulatory duty to maintain appropriate balance in local and imported prices. They said that India was deliberately dumping its cheap cotton yarn in Pakistani market to destroy the textile industry base here by trying to erode our Industry and damage the economy.

Substantiating their argument they said India was providing various incentives to its exporters which included concessions in bank interest, cut in electricity tariff, reduction in transportation charges, refund of VAT and tax concessions which totalled up to rupees 27 per KG. With this reduced price India was dumping its cheap cotton yarn to capture Pakistani market. They further said this was evidenced by the fact that cotton yarn imported from India was 6500 tons in 2012 which exorbitantly rose to 30,000 tons in 2013 and were expected to touch 36,000 tons in 2014. They said they were not against import of yarn but not at the cost of home industry. Similar regulatory duties are imposed by the Government on dumping of chemicals from Korea, Taiwan etc.

Spinning is the foundation process for all value added textile products – Government should strengthen Spinning industry of Pakistan   [ top ]

Pakistan Newswire, February 10, 2015
Karachi, February 10, 2015 (PPI-OT): The President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that textile industry is the most important manufacturing sector of Pakistan and has the longest production chain, with inherent potential for value addition at each stage of processing, from cotton to ginning, spinning, fabric, processing, made-ups and garments. He further said that Textile products have maintained an average share of about 60% in national exports.

He further said that spinning is the first process in the chain that adds value to cotton by converting raw material (ginned cotton) into a finished product (cotton yarn). Spinning is the foundation process and all the subsequent value additions, that is weaving, knitting, processing, garments and made-ups, depend upon the initial process of the spinning of yarn. Therefore, any variation in quality of yarn spinning directly affects the entire value chain.

Mian Idrees further said that any damage to the spinning industry in Pakistan will be transformed ultimately to cotton growers which will lead to poverty in underdeveloped rural areas of Punjab and Sindh provinces. To save cotton growers from losses we will have to save our spinning industry. It is noteworthy that because of subsidies and other facilities to its cotton growers in India the spinners are in the position to dump their production in Pakistani market, he added.

The President FPCCI suggested that government should take all measures to save the value addition chain and strengthen the Spinning industry of Pakistan so that it can compete in the global market. It is notable that more than 35% spindles in Pakistan are not being fully utilized.

The Spinners have made their heavy investments but due to shortage of energy, law and order situation and many other crises they cannot utilize their installed capacity, while import cotton yarn from India will not be required if capacity is fully utilized, he added.