The Adviser to Prime Minister on Textile Industry, Dr Mirza Ikhtiar Baig said that ‘National Textile Policy' is being finalised with the consultation of stakeholders and would be announced soon.

He was speaking at Lahore Chamber of Commerce and Industry on Wednesday. President LCCI Mian Muzaffar Ali, Senior Vice President Tahir Javaid Malik, Vice President Irfan Iqbal Sheikh, former presidents Shahzada Alam Mannoo, Iftikhar Ali Malik and Mian Misbahur Rehman also spoke on the occasion.

The adviser said that anti-dumping duty on bed lenin that had been imposed by the European Union would go by March next and this would open EU doors to Pakistani textiles. The adviser said that special measures were afoot to extend necessary support to the textile sector as the industry is in crisis and a large number of people were suffering.

Over the suspension of gas to textile units, the PM's adviser said that arrangements with Sui Southern Gas are being made for the supply of access 100 MMCF gas that would be bridging some of the shortfall being faced by the Sui Northern.

With regard to higher power rates, he said that chambers should force the power companies to cut their 30 to 40 percent line losses that would help stabilise electricity rates.

On R&D support to textile sector, Baig said that after signing of the agreement with IMF, R&D support, considered as subsidy is not allowed. It is now a gone story. However, work is being done on enhanced rates of Duty drawback to the exporters and allowing duty and tax refund on inputs, which were not allowed before like power, gas, diesel, furnace oil and petroleum products, which are not considered as subsidy for duty drawback. Regarding high markup, the adviser said that banks are charging highest spread of 7.7 per cent and the governor State Bank of Pakistan had been asked to ensure spread not more than 4 percent as per international practice that ultimately would bring down landing rates.

In his address, the LCCI president threw light on a number of issues being faced by the industry in general and textile sector in particular. He said that there was a time when people want to put their money in this sector but now due to acute shortage of power, gas and high cost of doing business the investment situation has taken a U-turn and the government should immediately come up with bailout package.

He said that inconsistency in policies and ad-hocism were contributing to our problems in a big way and there is a dire need to ensure implementation of policies in true letter and spirit to achieve desired results.

Daily Times 

Editor: Zhou Luying
19 Dec 2008 01:55:17 GMT

Source: news.alibaba.com