Commerce minister chaired the meeting of FTB on 16th Feb to discuss the three-point agenda of the development of the textile sector. The Federal Textile Board (FTB) meeting was held at the Expo center, Lahore, to find possibilities to enhance exports with respect to Rs 180 billion recently announced exports incentive package. As a result of meeting the commerce minister agreed with the industry to set up apparel council.
While talking to the meeting attendees he also mentioned that PM’s incentive package for the exporters is not limited to just Rs180 billion as the government’s rebate might surpass this limit depending on higher exports volumes.
During the meeting, the stakeholders across the textile value chain beginning from ginners, weavers, spinners, bed sheet manufacturers and garment manufacturers made detailed presentations on the current state of exports in their sectors and gave suggestions for improvements in the policies.The federal textile secretary, commerce secretary, PRGMEA Chairman Ijaz Khokhar, APTMA Chairman Amir Fayyaz, PHMA Chairman Irfan Bawani and Vice Chairman Adil Butt also spoke on the occasion.
While addressing the attendees, Mr. Dastgir said that the incentive package is not limited and the government provides maximum funds in this regard, urging the industry to speed up its efforts to increase exports. The minister agreed to the proposal of the industry to establish a Pakistan Apparel Council in line with the Indian Apparel Council to promote the textile exports. He further highlighted the facilities offered by the existing government in terms of zero rating, unprecedented cuts in exports financing rates, uninterrupted supply of electricity and gas and repeated reduction in electricity prices. For future, he assured the stakeholders of full government support.
PHMA Chairman Irfan Bhawani and Vice Chairman Adil Butt suggested that to cope with the decreasing exports in the textile sector, necessary is to schedule an innovative branding and marketing campaign and re-launch the Pakistani export, worldwide. Further stressed was the need to formulate sector based marketing campaigns to enhance exports and gain maximum benefits out of the GSP Plus Status. He said that the government has to devise a long-term aggressive strategy to get benefits of GSP Plus status. He deplored that it seemed that Pakistan’s textile industry has failed to get even minimum benefits of the GSP Plus status merely because of the government’s lack of interest in this regard.
The PHMA vice chairman demanded a cut in energy prices in line with the rates of regional countries including China and India. PRGMEA Chairman Ijaz Khokhar said that incentive package will only be beneficial if implemented efficiently. He requested the chairman to hold FTB meetings on a quarterly basis to ensure fastest implementations of the decisions.
Regarding product diversification, the PRGMEA chairman said that the garment sector is currently working with a limited product line. He further said that “Foreign buyers demanding new garments based on G3, G4, and technical fabric material. Due to excessive problems faced in importing fabric from IOCO and customs for re-export, the garments manufacturers excessively rely on local fabrics and hence our product lines are limited to denim and cotton twill products for export.”
While appreciating the government’s efforts for CPEC, he said that CPEC Committee should be formed in consultation with the concerned association to taking care of the local industry so that domestic investor can reap the benefit of this mega project. “CPEC Business Wing needs to be established to safeguard the existing local industries as well international investors,” he added.
On the other hand, APTMA Chairman Amir Fayyaz appreciated the efforts of government and thanked for the extended support from the ministry. He also showed his confidence on the export ability of Pakistani textile market. While speaking on the occasion, the textile secretary Mr. Hassan Iqbal said that the textile sector is in need of an up gradation in the supply chain, productivity and increased value-addition, as a must for survival. He said the objectives of the Textile Industry Division are to formulate strategies and program to enable the textile sector to meet these challenges and compete globally in a way better than before.
