Page 9 - November-December-2016

Rs.200 Billion Bailout 9

Package Proposed for News

Textile Sector

Recently government of Pakistan has proposed a The meeting made some basic demands from the
bailout package of 200 billion PKR/- in order to revive government with the core purpose of enhancing the
the textile sector in Pakistan. On 19th October 2016, the business processing. Said by sources; demand for an
Minster of Commerce, Engineer Khurram Dastgir said all Pakistan equal tariff for electricity was on the list. At
that the government has proposed a package in order the same time, there was a demand for the gas at
to revive and bring modern changes in the Pakistan industrial sector all across the country with the price rate
textile industry. of 7PKR/- per unit.

While updating the Senate Standing Committee, Held at APTMA House Lahore, the meeting was
Khurram Dastagir said that government will give attended by leading representatives from All Pakistan
distinctive incentives in terms of relief on taxes for the Textile Mills Association. The officials from the industry
textile industry with a purpose to enhance the value were invited to formulate a strategy to restore the
addition in the industry. He also said that the viability in all sectors of textile industry, specifically in the
government of Pakistan is also committed to bring region of Punjab. By the end of the meeting, the
advancement in the textile sector and compete with the community agreed to sort a level playing field in all parts
existing regional competitors who have come up in the of the country as a basic necessity for the growth of the
last few years. textile industry.

A six membered committee was formulated, consisting The addressers placed an emphasis on the immediate
of relevant stakeholders and ministers, to review the announcement of the revival of packages in the textile
current challenges faced by the textile industry. While industry in Pakistan. The basic focus was on the
addressing, he also added the formulated committee facilities for the region of Punjab as compare to other
will soon come up with a comprehensive recommendation parts of the country. There was a huge criticism on the
system for reinforcement of textile industry. structural imbalance from government and an
emphasis was placed to overcome the issue.
In the meeting the committee also revised the decrease
in cotton production and argued on the need to provide A review was done of the proposed textile packages
quality seed and fertilizers to the farmers. The and concerns were shown on the delay. Summary of
committee also informed us that the cotton growing the meeting says that; “The industry is losing the
areas of South Punjab have moved on to the crops like opportunities of export orders and so does a loss in the
Sugarcane, Maze and the reason is all because of the GSP. The delay in the revival of 35% closed capacity is
loss suffered in cotton production. also causing a delay in investment decisions and
increasing the uncertainties.”
The meeting was attended by a number of prominent
individuals from textile industry of Pakistan. And we The meeting ended up by insisting the prime minister to
hope that these issues are a must to be addressed announce the delayed textile packages and start
in near future and will surely have a positive holding textile meetings on regular basis under his
impact on the textile industry of Pakistan. personal supervision with a growth-oriented strategy.
Meanwhile, in a round table meeting of The event shows some serious concerns from the
Aptma, the government of Pakistan textile industry and the need of government to pay
has been demanded an attention to the industry to initiate the growth and
immediate revival of packages. overcome the existing or upcoming issues. Textile is no
The core reason for these doubts one of the most important industry and plays a
demands is said to be to major role in the sustainability of the GDP of Pakistan.
avoid any further downfall Keeping in mind the role of textile industry in the
in exports. economic stability and growth of Pakistan, necessary is
to work on the issue in an in-time manner.

November/December 2016