Page 11 - April-May-2020

10 16 23
Abdul Razak Dawood

urges industrialization Denim Première Vision

through import substitution

Mr Abdul Razak Dawood said industrialization Pakistani industrial sector. 2019 in Milan and London
through import substitution coupled with
export growth through diversification was He remarked, “We will give a framework for
the industrial policy that which industry is of
imperative to put the country on road to strategic importance and the government
progress and prosperity. have to support it.”
Denim Première Vision will be held in Milan during brands, which are among the largest players in the
At FCCI, he said during the last decade, many He said some experts approached him that June 5-6, 2019 and London, during December 4-5, sector, and being an international city, well-structured
industrial units had been closed down, due to the development of industrial sector should be 2019. Last May in Paris, the show unveiled a and inviting for visitors.
which, Pakistan’s export dwindled from US$ 25 left on market mechanism. “I think, it is not right redesigned event format, with a new positioning,
to 20 billion. He said, “Our exports remained time as we have to boost our industry which is display, experiences, and destination for the entire Mr Guglielmo Olearo, show director, says “This
restricted to textile, however, we are planning to passing through a tough internal competition denim value chain and its players. The show is initiative is part of our broader (roving denim)
give a comprehensive industrialization policy, with squeezing market,” he added. aimed at creative fashion brands developing denim strategy, begun in 2018. We held the show in Paris in
wherein, focus will be on engineering, chemical, collections. May and in London in December with a specific
IT and agriculture sectors instead of the textile He cited the example of Japan, Korea, mission: to make the best use of geographic
sector alone.” He lamented that we must shun Malaysia, Vietnam and Cambodia and said Exploring the different facets of contemporary denim, proximity and bring our exhibitors to markets with
the import trend and encourage ‘Made in that they had supported their industrial sector the show is aimed at all the creative fashion brands strong potential. Milan fits in perfectly with this
strategy. The Lombard capital has a long history with
developing denim collections - fashion and luxury
Pakistan’ culture to give a supporting hand to to achieve self-sufficiency. to provide industry professionals an opportunity to AD
APTMA requests withdrawal brands, pure jeanswear players, web players and denim, and the city is fostering a lot of truly
more. The show is now an itinerant international
contemporary and sophisticated concepts. So it
event, organized in different European cities with a
made sense to include this city among our preferred
Government Support to Cotton
of 4pc withholding tax fashion impact. The goal of Denim Première Vision is locations. The event will take place next June, before
the show returns to London in December 2019. We
wanted to touch down in capitals with mature fashion
meet new markets, while simultaneously discovering
Sector Up 33% to $5.9 Billion
our brands. Milan is all of that, especially in Zona
As per APTMA letter addressed to the Chairman withholding tax on entire textile value chain will surely new sources of inspiration. industries, cities that can inspire our exhibitors and
FBR, 4pc withholding tax imposed on the entire hasten to the closure of these factories resulting in Now multi-community and further removed from Tortona, a post-industrial neighborhood thrumming
Subsidies to the cotton sector took a major jump
support in cotton in 1997-98, trends have shown
textile value chain is creating more difficulties for the massive de-industrialization loss of revenue to FBR traditional vintage denim codes, the denim sector with culture and creativity. It is a focal location of the
that subsidies decline when prices are high and
in the season including direct support to
industry ultimately leading to its closure. and unemployment of over a million people.’’ has adopted the seasonality of the fashion industry big Italian houses, and we chose it because it has a
increase when prices are low. When cotton
production, border protection, crop insurance
subsidies, and minimum support price prices increased from 70 cents per pound in in terms of product creation and development. storied past while continuing to invent new stories.
Mr Shahid Sattar, Advisor to APTMA said, “Yes, we The letter stated, quoting an example while looking at We will bring together around a hundred exhibitors,
mechanisms. At $5.9 billion, it reflects an
2015-16 to 83 cents per pound in 2016-17,
have agitated the issue in the letter written to FBR the cotton purchase from the ginners, a 4pc The Denim Première Vision show alights for the first from no fewer than 16 countries. And the whole
increase of 33% over the last years total of
subsidies decreased. When prices jumped again
chairman mentioning that in repeated meetings both deduction from the ginners invoices will lead to time in Italy’s fashion capital in June 2019, in an aim sector will be represented: from upstream with the
$4.4 billion.
to 88 cents per pound in 2017-18, however,
in and outside of FBR, in the presence of others it pressure on ginners to reduce the price they pay for is to broaden the business outlook for its partners. weavers and manufacturers on through to finishings
subsidies continued to increase.
has been repeatedly stated that tax on domestic cotton procured from the farmer as their own tax The aim of the show is to touch down above all in and treatments that give denim its washed, frayed
Those are the findings in the last year
commerce was 1pc instead of 4pc as there is no liability in reality is only for ginning charges which mature markets offering denim professionals new look. And, of course, all the components and
The share of world cotton production receiving
‘Production and Trade Subsidies Affecting the
change in the income tax laws, rules and regulations. constitutes 35pc of the ginned cotton. business development opportunities. treatments.”
direct government assistance — including direct
Cotton Industry’ report just released by the
However, last night to our utter surprise and payments and border protection — increased
International Cotton Advisory Committee (ICAC).
disappointment a ‘clarification’ by FBR was issued This would lead to huge income tax refunds claims The Lombard capital meets all the criteria the As an itinerant show, Denim Première Vision also
from an average of 55% between 1997-98 and
In all, 10 countries provided subsidies to their
stating that the withholding tax on the entire textile which have little chance if any of it being settled industry is looking for – being an inspiring city that intends to ensure a continuity between its various
2007-08, to an estimated 83% in 2008-09. From
domestic cotton industries with an average value
value chain would be 4pc.” within any reasonable time frame. This is more constantly reinvents itself while capitalizing on its editions. While the show turns to new destinations to
2009-10 through 2013-14, this share declined
of 18 cents per pound, up from 17 cents per
onerous than GST as there is no allowance of setoff
pound the year before. and averaged 48%. historic cultural roots, being the center of Italian help businesses invest in new markets, the challenge
of withholding tax deducted on inputs.
He added, “With the imposition of 17pc sales tax, fashion, featuring a wide range of creative brands, also lies in building ongoing relationships between
increase in turn over tax to 1.5pc and other issues, In 2014-15 and 2015-16, the average percentage from high street to luxury, being a historic denim these various players. The December 2019 edition
One data point that has reversed long-term
The letter in the end asks FBR to end 4pc
bulk of the industry was already on the verge of withholding tax on entire tax value chain and instead capital that saw the birth of pioneering industry will thus be held once again in London.
trends is the correlation between prices and the
of production receiving direct assistance
shutdown due to non-profitability and extreme notify 1pc tax as was agreed in countless meetings
amounts of subsidies provided by governments.
increased to 75%. That number then declined to
liquidity crunch. The final blow of 4pc imposition of with Industry at all levels of government.
47% in 2016-17 and 2017-18.
Since the Secretariat began tracking government
April/May 2020July/August 2019 November/December 2018