Page 10 - July-August-2017
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            as the shortage of cotton-- 3.8 million bales, 4%   amount of attention to it” he added.
            customs duty and 5% sales tax has been
            re-imposed. Further mentioned were the energy     With an emphasis, he said that the earliest revival, as
            costs that are more than 30% of the overall       well as the growth of the textile industry, is a must to
            conversion cost in weaving, spinning and the      navigate the jolting textile industry towards being a
            processing industry. The electricity tariff is 50%   better and stable competitor in the market. He also
            higher than the regional competitors while that of the   highlighted the terrifying state of affairs in the industry       Textile products criteria for
            gas tariff is 100%. Another important highlighted   by saying that the production capacity of the textile
            point here was the various add-ons including the   industry of Pakistan has been impaired by 35%
            UFG, GIDC and cost of supply.                     across the value chain. Textile exports have declined by
                                                              11%, its global market share has reduced by 23%,                           EU ecolabelling amended
            While talking to the media the Chairman of APTMA,   investment in the sector has dropped by 17% and 30%
            Aamir Fayyaz demanded for the zero rating of the   of the unemployment has already been redundant.
            textile raw materials, reductions in cost of doing                                                                     The European Commission (EU) has recently issued   are incorporated into textile clothing and accessories
            business, resolution of the liquidity issues, and filling   For seeking revival and growth of the textile industry
            up the policy implementations dividing immediately   and to enable the industry to increase its production,            a notice in its official journal establishing the   and interior textiles, including zips, buttons and other
            to ensure restoration of the industry’s viability and   exports and employment in broader economic                     ecological criteria for the award of the EU Ecolabel to   accessories, as well as membranes, coatings and
            revival of the export potential of the country.   interest, Mr Fayyaz demanded complete realisation                    textile products by amending certain clauses. The   laminates.
                                                              of Rs 180 billion textile package announced by the                   notice modifies the definition of textile products to
            Mr Fayyaz further said that the high cost of doing   PM in the starting month of 2017. Duty/tax-free                   include intermediate products that can now benefit   (3) Cleaning products: woven or non-woven
            business, shortage of liquidity, the ongoing      import of cotton and polyester staple fibre, liquidation             from the environment-friendly label.  The validity of   products made from textile fibres and intended for
            policy-implementation divide and realization of only   of all outstanding refunds of sales tax, withdrawal of          the Ecolabel requirements for textile products has   the wet or dry cleaning of surfaces and the drying of
            Rs03 billion out of Rs180 billion textile packages are   all electricity surcharges, the supply of RLNG at             been extended to 78 months. The criteria were due   kitchenware.
 In the massive blow to exports, Pakistan had   regional competitors are performing better than   a few major concerns of the industry at present. “The   Rs400/MMBTU and strengthening of domestic   to expire in June 2018.
 lost a prominent percentage of shares for   Pakistan. It showed how the Vietnam has been   viability of the textile industry has been eroded fast   commerce through tariff/non-affiliated measures to
 textile exports in the global market. With a loss   ranked first by showing a growth of about   but the government was not able to pay the required   counter informal trade and dumped imports.  The sentences explaining the exceptions that apply
 of about 23%, from 2.2% to 1.7%, the situation   107% in textile and clothing exports, followed                                   Under the EU Ecolabel voluntary scheme,          to recycled fibres or organic cotton fibres have been
 is raising questions for the trade and economic   by Bangladesh with the growth of 64% in the                                     companies can label their products as having a   amended for clarity. Clarifying on how the
 policy makers and the government of Pakistan.   exports. Likewise, India has shown a growth of                                    lower environmental impact than other products   percentage of cotton in a product should be
 It also unfolds the latest arrangement on the   31% and Sri Lanka with 20% growth whereas;                                        within the same group. In the textile sector, the   calculated for the purpose of ensuring compliance,
 restoration of sustainability and growth of textile   Pakistan is still in the red zone with a negative                           Ecolabel can be awarded to all sorts of products   the July notice says the recycled cotton fibre shall be
 industry, prepared by APTMA.   growth of 11%.   Pakistan focusing on new markets                                                  made of textiles, including clothing and accessories,   deducted from the required minimum percentages in

 “The investment in textile and clothing   APTMA also pointed out the government by                                                interior textiles, fibres, yarn and fabric.      all cases, except for clothing for babies under three.
 massively declined by 44% in 2016-17 on   saying that the bilateral trade agreements                                              The EU Ecolabel assures customers of a number of   Amendments have also been made to the sentences
 account of which, the country’s textile   meaning by that free trade agreement (FTAs)   to boost trades                           environment and health related factors, including the   explaining organic cotton, transgenic cotton, IPM
 production capacity has got impaired by   finalized with various countries is faulty and
 30-35% due to which 150 industrial units have   failed to provide the level playing field to the                                  limited use of substances harmful to the environment   cotton and pesticides restriction requirements for
 become non-functional resulting in 30%   real stake holders, and export- oriented                                                 and human health, reduced water and air pollution,   textiles to harmonise them with those used for the
 unemployment. More shockingly, the textile   industrial sector. The defamed law and order   Officials from textile industry shared their word with   trade relationships, the EU is one of the top priorities   resistance to shrinking when the textile is being   requirements for footwear and furniture product
 industry of Pakistan lost 15 percent   situations in Pakistan had also lead to the   media that Pakistan is now focusing on exploring new   for the government of Pakistan. "According to the   washed and dried, and colour resistance to   groups.
 technological edge advantage over   limited militant activities and stopping the   markets, in different regions. The purpose for the haunt   vision of Nawaz Sharif, we are committed to   perspiration or when the product is being washed.
 competitors.”  investors to visit Pakistan. Though in recent   is to enhance and broaden the exports of the country.   enhancing trade volume with EU and other regions of   Under the amended definition, textile products   A criterion on the substitution of hazardous
 years the situations are improved there is a                the world" said Mr Malik.                                             include the following three categories:          substances used in dyeing, printing and finishing has
 With the non-performance of the textile sector   need to take steps at the governmental level to   While speaking with the media, the minister of                                  also been amended to make it clear that “functional
 of Pakistan, due to the highest cost of doing   change the perception of Pakistan around the   commerce and textile, Pervaiz Malik said that in the   As compared to 2013, the year 2016 had recorded   (1) Textile fibres, yarn, fabric and knitted panels:   substances incorporated into synthetic fibres and
 business in the region, Pakistan is facing a very   world so that more buyers and investors can   global world of this date, economic relations and   an increase of about 60% in the exports of textile   intermediate products intended for use in textile   man-made cellulose fibres during their
 high trade deficit of $35.609 billion and the   visit Pakistan.  trade activities are the major component of   products to the EU. Malik further added that “the   clothing and accessories and interior textiles,   manufacturing” that are hazardous may also be
 external deficit has swelled to $16.305 billion. In   diplomacy for keeping ties with the global as well as   Pakistani rug and carpet exports to EU also
 this manner, APTMA, a number of times have   The presentation also revealed that the PM                                           including upholstery fabric and mattress ticking prior   subject to restrictions.
 discussed and clearly mentioned how the   export lead growth package has gone reversed   regional markets. He further explained that the   increased from 30.30 million euros in 2013 to 37.92   to the application of backings and treatments
            government settled on prioritizing the enhancement   million euros in 2016.”                                           associated with the final product.               Other changes include those relating to the criteria
            of exports of the country and to achieve the trade                                                                                                                      for corporate responsibility and the standards for
            targets for the ongoing fiscal year.             Likewise, the Pakistan’s export of cotton and other                   (2) Non-fibre elements: intermediate products that   colour fastness of textiles.
                                                             raw materials that are for the value added textile had
            Mr Malik further said that they are focusing on the   increased in the EU for about 9% in 2016 as
            short medium and long-term strategies to boost the   compared to 2013. This indicates an increase
            multilateral relationships with the potential markets,   consumption of raw materials by the downstream
            around the globe. Being an important part of the   industry, said Mr Malik.
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