JavaScript seems to be disabled in your browser.
You must have JavaScript enabled in your browser to utilize the functionality of this website.

News Clips 27 October, 2015

[ MoU signed for Form-E automation ]
[ Non-textile exports dip 26pc in July-Sept ]
[ Textile sector slams 10pc duty on yarn imports ]
[ September 2015: textile exports fall to $1.093 billion MoM ]
[ FCCI seeks special bailout package for textile sector ]
[ Senate panel concerned at declining textile exports ]

MoU signed for Form-E automation    [ top ]

DAWN, October 27, 2015
KARACHI: The State Bank and Federal Board of Revenue on Monday signed a memorandum of understanding (MoU) to streamline issuance of Form-E that will benefit the stakeholders and reduce the cost of doing business, said a press release.

The SBP and the Pakistan Customs have developed an Electronic Form-E (EFE) module in consultation with relevant stakeholders and incorporated in the Pakistan Customs’ electronic system called Web-based One Customs (WeBOC).

SBP Governor Ashraf Mahmood Wathra and FBR Chairman Tariq Bajwa signed the MoU and expressed their optimism that the automation of Form-E would have manifold benefits to all stakeholders and the country would reap advantages of increased inflow of foreign exchange.

“The automation will reduce the cost of doing business for exporters and will bring efficiency in the system,” the SBP governor said.

The FBR chairman said the move would also facilitate in efficient processing of duty drawback claims of the exporters as well as preventing any fake/bogus documentation.

Currently, Form-E is issued manually by authorised dealers (banks). The system will begin receiving applications for EFE with effect from Nov 2, 2015, for exports taking place from Nov 11, 2015 onwards. The request for EFE will be submitted electronically by the exporter in WeBOC and the bank will approve or reject EFE electronically in WeBOC.

However, for exports taking place through One Customs, manual Form-E will be issued by banks as per existing instructions. 

Non-textile exports dip 26pc in July-Sept   [ top ]

DAWN, October 27, 2015
ISLAMABAD: Pakistan’s non-textile exports fell by 25.52 per cent to $1.929 billion during the first quarter (July-Sept) of 2015-16 from $2.59bn in the same period last year, Pakistan Bureau of Statistics data showed on Monday.

Product-wise details showed a decline of 84.44pc year-on-year in exports of overall petroleum products, mainly due to a 100pc drop in petroleum naphtha exports. Crude exports also declined by 60.39pc.

Carpets and rugs exports fell by 11.68pc during the period and exports of sports goods dipped 16.27pc year-on-year.

Also read: Non-textile exports dip 22pc 

Exports of tanned leather dropped 21.65pc and leather products by 14.46pc. All value-added leather products exports declined in July-Sept 2015-16.

Footwear exports dipped 26.97pc, primarily due to 30.53pc decline in exports of leather footwear.

Exports of surgical goods and medical instruments went up by 0.55pc, while engineering goods exports dipped by 28.54pc during the period under review.

On a year-on-year basis, exports of gur declined by 58.98pc, cement 38.55pc, handicraft 100pc, molasses 55.56pc, furniture 31.32pc, gem 69.94pc and jewellery by 2.34pc.

In the food basket, rice (basmati and non-basmati) exports dropped by 7.13pc. Exports of oil, tobacco, leguminous vegetables and vegetables also witnessed decline during the period under review. However, exports of wheat and meat witnessed a growth during the period. 

Textile sector slams 10pc duty on yarn imports    [ top ]

DAWN, October 27, 2015
KARACHI: The value-added textile sector on Monday slammed the imposition of 10 per cent Regulatory Duty (R/D) on import of cotton yarn and fabric from India on the grounds that a case of anti-dumping filed by spinners’ body is already pending before the National Tariff Commission (NTC).

Leaders of associations of hosiery, readymade garments, knitwear and sweaters, cotton fashion apparel, etc pointed out that since the NTC was hearing a case of anti-dumping against Indian cotton and yarn, the government could not unilaterally take a decision of imposing 10pc R/D.

The leaders said that issues related to trade, tariffs and safeguards fall in NTC’s domain and the government decided to restrict cotton import without consulting the commission.

Import of Indian fabric is already banned as per import policy of 2012-15 but a 10pc R/D had been also imposed on import of fabrics from India, the leaders said.

“It shows that the government clamped duty without doing its homework to oblige spinners,” observed Jawed Bilwani chairman Pakistan Apparel Forum (PAF).

The leaders said that they were not impressed with reduction in the rate of long term financing as 90pc of businesses did not depend on the facility. Similarly, a cut in the rate of export refinance will not benefit the sector as small and medium units do not avail it, the leaders said.

The sector representatives further demanded immediate withdrawal of the regulatory duty on import of cotton yarn and fabric. 

September 2015: textile exports fall to $1.093 billion MoM   [ top ]

Business Recorder, October 27, 2015
Textile exports declined to $1.093 billion in September 2015 from $1.110 billion over previous month of August 2015, which reflects a decline of 1.52 percent, according to Pakistan Bureau of Statistics (PBS). According to provisional figures of textile exports compiled and released by the PBS, export of cotton yarn decreased to $121.902 million in September from $137.635 million in August 2015 - a decline of 11.43 percent and cotton cloth to $193.999 million from $198.327 million, which is negative by 2.18 percent. 

Export of yarn other than cotton yarn declined to $3.282 million in September from $4.515 million in August, 2015, showing a decrease of 27.31 percent and knitwear export declined to $202.645 million in September, 2015 from $211.401 million in August, 2015, reflecting a decrease of 4.14 percent. 

Export of bedwear declined to $173.252 million in September 2015 from $179.487 million in August 2015 - lower by 3.47 percent and export of readymade garments have declined to $154.731 million in September 2015 from $175.725 million, down by 11.95 percent. Exports of art, silk & synthetic textile marginally decreased to $26.236 million in September 2015 from $26.618 million in August 2015, which is negative by 1.44 percent. 

Provisional figures complied also show that export of made-up articles (excl. towels & bedwear) increased to $57.770 million in September 2015 from $52.015 million in August 2015, which is 11.06 percent higher over previous month. Raw cotton export increased to $32.464 million in September 2015 from $17.247 million in August, higher by 88.23 percent. 

Exports of other textile materials increased to $47.646 million in September 2015 from $37.172 million in August 2015, which is higher by 28.18 percent. Towels to $69.957 million in September 2015 from $64.464 million in August 2015, which shows an increase of 8.52 percent. Exports of tents, canvas & tarpaulin declined to $9.596 million in September 2015 from $5.716 million, up by 67.88 percent. 

FCCI seeks special bailout package for textile sector   [ top ]

Business Recorder, October 27, 2015
President Faisalabad Chamber of Commerce and Industry (FCCI) Chaudhary Muhammad Nawaz has demanded special bailout package for the value-added textile sector to offset the ill impacts of 10 percent duty on the imports of yarn. In a meeting with the representatives of value-added textile sector, he said that the sector is the only sub sector of textile chain that is not only creating maximum job opportunities but was also contributing in a big way to earn foreign exchange. 

He said that despite of energy crisis, non-payment of refund claims and complicated tax matters, this sector has given an excellent performance with three percent increase in its export during first quarter of this fiscal. On the other hand, all other sub-sectors of textile recorded 22 to 23 percent decline in its exports. 

He said the government has given a special package to the spinners but the value-added sector has been over burdened by levying 10 percent duty on the imports of yarn. He expressed concern over unilateral decision of imposing duty without any consultation with the value-added sector and said that the entire textile sector has been put into trouble to save only spinners. He said the government should withdraw this regulatory duty before the start of protestation by value-added sector. He also demanded a bailout package for this sector so that it could overcome the ill impacts of energy crisis etc and improve its overall performance. 

Continuing Chaudhary Muhammad Nawaz said that internal rift in the textile sector is only due to the non-availability of textile minister for the last six to seven months. There is no one available to protect the legitimate interest of the entire textile chain in the federal cabinet. 

He said that non-availability of this minister is not only problematic for the textile sector but would also create problems for the government. He particularity lauded the contribution of former textile ministers from Faisalabad and said that Chaudhary Mushtaq Ali Cheema and Rana Farooq exploited their capabilities to safeguard the interests of this important segment of national economy. He demanded of the Prime Minister to immediately appoint a full time textile minister from amongst the MNAs of the Faisalabad which is known as textile capital of Pakistan. 

Senate panel concerned at declining textile exports   [ top ]

Business Recorder, October 27, 2015
Chairman, Senate Standing Committee on Textile, Senator Mohsin Aziz has expressed concern over declining textile export of the country, and asked the government to take pragmatic measures to cope with the situation. "The government should be worrisome about the declining of textile exports of the country," Aziz asked, in a press statement issued here on Sunday. 

He said: "How to control and how to bring export to normal and to increase it, should not be concerned of the government, as planned to increase export, especially presence of GSP+ status, granted by EU states, it should have ensured that the country exports should at least increase by $2 billion whereas the exports are even below the level of year 2009-10, he regretted. 

The chairman said the textile exports have shown a sharp decline and even compared to last year export which was not satisfactory. This year, he added up till now a further drop of 14 per cent compared to last year is very alarming, disappointing and worrisome. 

Although, the PTI Senator said the government has put a duty of ten percent on yarn and fabric, which is no doubt an appreciable step and will stop the dumping of Indian yarn and clothes, which will surely improve local sales. 

Aziz said that due to high cost of business, especially that of electricity and gas prices Pakistani products have become uncompetitive in the world market. 

"Textile the larger employer and largest agriculture produce buyer in the country, other than the major exporter of the country," he said. 

PTI Senator, therefore, said that there is dire need of hour to reduce gas prices and also Gas Infrastructure Development Cess (GIDC), which has been increased the around 40 per cent leaving the textile industry on verge of collapse. 

Varying with competing countries, he said the region prices of gas, including India, Bangladesh Vietnam etc, are in the range of $3.5, $4.2, while in Pakistan is around $7.5, which come to around 100 per cent increase as compared to competing countries. 

Similarly, he said in the prices of electricity in Pakistan, which is in the range of 13-14 rupees per unit, whereas in the region, it is below ten rupees. In these circumstances, the Senator said how can be industry, especially exporting textile to be revived and compete in rest of the world. 

He recalled the recommendation proposed by textile committee, sent to the government regarding improving the current situation, have also not been taken into consideration up till date, he regretted.