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News Clips 20 October, 2015


[ PRGMEA strongly opposes regulatory duty on yarn import ]
[ RD on yarn, fabrics: APTMA hails Dar for timely decision ]
[ Value-added sector slams govt for giving no relief ]
[ Pakistan, Japan collaborate for textile development ]

PRGMEA strongly opposes regulatory duty on yarn import   [ top ]

Daily Times, October 20, 2015
KARACHI: Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Chairman Irfan Ali has strongly opposed the slapping of 10% regulatory duty on import of cotton yarn.

While reacting over the government's decision to impose 10% regulatory duty on cotton yarn from India, he said that it would be death a warrant for the value-added textile industry, as exports are already declining rapidly, and in case of additional input cost, it would be a death warrant for the most important foreign exchange earning sector. He appealed the government not to make any decision in isolation or by just meeting the demands of the All Pakistan Textile Mills Association (APTMA).

He further demanded the government to refund claims, Rs 12 billion, of the garments' exporters, which are stuck with the government against drawbacks on local taxes and levies (DLTL), sales tax and duty drawbacks.

In a message to the prime minister, finance minister and Federal Board of Revenue (FBR) chairman, Irfan said, "Despite being the largest exporting industry and highest employment provider, the garment exporters were facing multiple issues with the government. First and foremost is the issue of pending DLTL claims jeopardising the key initiatives of the textile policy and trade policy. Currently, about Rs12 billion of exporters' claims are pending with the government but none of the authorities concerned have issued a single penny despite an outlay in the current budget."

He said that PRGMEA officials had met with the member customs and FBR several times but to no avail. Irfan pointed out that instead of resolving of energy crisis, exporters are being constantly bogged down in meaningless administrative procedures, which diverts our attention from our main activity- exports. The government should play a role of business facilitator instead of a regulator, he added.

He warned the government to mend its ways, as all economic indicators are showing negative trends.

"The government should provide level-playing field by reducing gas and power supply to the industry and help exporters cut their energy costs and release billions of rupees stuck in sales tax refunds," he said, adding that due to gas shortages, mills cannot process the fabric in time and the sewing units simply cannot guarantee on time deliveries of export shipments. "With this productivity level, we cannot compete with Bangladesh, let alone India or China."

Irfan said that the government was anticipating enhancing the country's exports by $1 billion annually after getting GSP plus status. However, he said things moved in opposite direction, as exports plunged in last several months mainly due to the ongoing energy shortage. The country's overall exports have shrunk by 6.86% in July-October to $7.98 billion from $8.56 billion of the corresponding period last year. 

RD on yarn, fabrics: APTMA hails Dar for timely decision   [ top ]

Business Recorder, October 20, 2015
All Pakistan Textile Mills Association (APTMA) Central Chairman Tariq Saud Monday appreciated Finance Minister Ishaq Dar, Haroon Akhtar, Special Assistant to the Prime Minister on Revenue and his team for their timely and prudent decision of protecting the domestic trade and industry from the dumping of highly subsidized import of textile products. 

He said the textile industry, representing almost all the sub-sectors from yarn manufacturers to garments manufacturers, is grateful to the government for its timely and wise action. "An unchecked entry of dumped textile products was hurting the infrastructure of the basic textile industry of Pakistan by and large," he added. He said the government has averted the destabilisation of the infrastructure of basic textile in Pakistan. The growth of agriculture sector and the employment attached with it were also rendered vulnerable. 

He has dispelled the apprehension that the entry of cheap yarn was beneficial to the value added textile sub-sectors, saying that entry of subsidized yarn at the cost of the employment of a large number of workforce in the basic textile sector, extensive damage to infrastructure and diminished immediate supply source had put to risk the viability of the value added sector as well. 

He said the Finance Minister recognised the risk to domestic industry and has assured of restoring the viability of the textile industry by reducing the cost of doing business and reviving the competitiveness of the textile industry internationally. Tariq Saud expressed the hope that the government would resolve the pending issues including removal of electricity surcharge and Gas Infrastructure Development Cess for captive and processing use. Zero rating of taxes on exports and focus market incentives are also being expected by the textile industry, he added.

He lamented that some individuals, carrying the interest of commercial importers with zero share in value added exports, are creating unnecessary hue and cry on the steps taken by the government. "There should not be criticism for the sake of criticism and no one should overlook the national interest in any situation," he added. Chairman APTMA said the government has averted market imbalance by imposing additional 10 percent regulatory duty and the value added sector of textile industry having $10 billion worth exports has always been in favour of such measures. 

Value-added sector slams govt for giving no relief   [ top ]

DAWN, October 20, 2015
KARACHI: Different segments of the value-added textile sector have criticised the government for providing relief only to the spinning and weaving industry and demanded immediate announcement of incentives to help them prop up falling exports and compete with regional peers.

Leaders of different segments of the sector agreed that the government was not fair to the industry which contributed up to 80 per cent in exports.

The sector also opposes regulatory duty on import of cotton yarn which, they say, will increase their cost of production by three to four per cent and make them uncompetitive on the world markets.

Even incentives like reduction in long-term finance (LTF) and export refinance only supported the spinning sector because the value-added sector was mostly operated by small and medium enterprises, they argued.

Exports cannot go up if huge refunds towards duty drawback and sales tax remained stuck up with the Federal Board of Revenue (FBR), lamented the leaders of eight value-added segments.

They urged the government to give 5pc duty drawback on exports and immediately withdraw cess of 0.25pc which is charged on all exports and around Rs5 billion is collected on this account. They reiterated their demand of zero-rating for all export-oriented industries and reduction in the rates of utilities like gas, electricity and water.

They urged the government to withdraw Gas Infrastructure Development Cess (GIDC) or at least bring the rates at par with the regional countries.

These stakeholders were also highly critical of the trade officers and the procedure of their appointment. They demanded that the government should introduce reforms to improve the level of civil servants which has deteriorated over the years.

Pakistan Bedwear Exporters Association (PBEA) Chairman Asif Javed said bedwear exports have been falling consistently since 2006 when they were $2.1bn.

Pakistan Readymade Garm­ents Manufacturers and Expor­ters Association (Prgmea), Towel Manufacturers Association (TMA), Pakistan Hosiery Manufacturers Association (PHMA) and Pakistan Knitwear and Sweater Exporters Assoc­iation (Paksea) said they were also facing the same situation.

However, All Pakistan Textile Mills Association (Aptma) Central Chairman Tariq Saud appreciated Finance Minister Muhammad Ishaq Dar and his team for their decision of protecting the domestic market from the dumping of highly subsidised imports of textile products.

“Unchecked dumping of textile products was hurting the sector and could have resulted in a large-scale shutdown of industries,” he maintained.

Pakistan, Japan collaborate for textile development   [ top ]

Daily Times, October 20, 2015
KARACHI: The Trade and Development Authority of Pakistan (TDAP), Pakistan-Japan Business Forum (PJBF) and Japan International Cooperation Agency (JICA) jointly organised a ‘Pakistan-Japan Textile Workshop’ at a hotel.

The purpose of the workshop was to provide useful information to improve production management, quality control and inspection for Pakistani manufacturers.

The presentations, on the occasion, were made by Japan Textile Importers Association (JTIA) senior expert Yashiro Shoda and QTEC General Manager Hisao Nishiyama.

Shoda spoke on “Expectations of Pakistan Textile Industry”, referring to some industrial engineering approach, while Nishiyama talked about “Good Factories & Bad Factories” with many practical advices and examples from his experience of audit and inspection of textile factories.

TDAP Chief Executive Officer SM Muneer, PJBF Vice Chairman Kalim Farooqui, and JICA expert Hideaki Shimizu also addressed to the workshop.

SM Muneer said that Pakistan had a dynamic, vigorous and export-oriented textile industry that has an overwhelming impact on the economy. This is a good time for Pakistan to take positive steps towards entering the Japanese market, he added.

He said for export promotion to Japan, JICA and TDAP have recently opened a new website to provide business information of Japan, especially for Pakistani exporters. Addressing the workshop, Yasuhiro Shoda adviced that Pakistan needed to work on the process design and curtailing of costs, while Nishiyama said that Japan has a $100 billion apparel market and the Japanese consumers like maintaining quality standards.

“The Japanese textile delegation of 13 members visited Pakistan without being afraid of several security issues. In addition, we hear that some famous Japanese apparel companies are also planning to buy garments from Pakistan on original equipment manufacturer (OEM) basis. We believe this is a good time for Pakistan to challenge the Japanese market besides the US and European markets,” he added.

Recently, Pakistan-Japan Textile Day was observed in Lahore on Oct 12, which was also attended by the Japanese importers. They had productive business-to-business (B2B) meetings with local exporters. Around seventy B2B meetings were held between the Pakistani sellers and Japanese buyers. Some Japanese importers were keen on buying yarn and fabrics from Pakistani companies.