Page 63 - August-September-2018

62 New Textile Policy 63 for the installation of “testing equipment for harmful Pakistan for establishment of Special Economic

substances”.
Zones (SEZs) along various routes of the
Reports A way forward • Manufacturing of textile machinery will be China-Pakistan Economic Corridor (CPEC). 46
facilitated by the PTI Government with required
Special Economic Zones would be established at
inputs such as plastic, paper, polythene, etc. Joint
41,715 acres of land across the country. As many as
17 industrial zones would be established in Khyber
ventures and investments will be encouraged to
Pakhtunkhwa, nine in Balochistan, seven in Sindh,
establish textile machinery manufacturing or
four in Punjab, two in Gilgit-Baltistan, one in erstwhile
up-gradation of plants in Pakistan. Ventures bringing
Foreign Direct investment (FDI) will be supported by
Federally Administered Tribal Areas (FATA), four in
• Infrastructural improvisation will be made to
The newly elected government is energetically doing business, combined effluent treatment plant, the PTI Government. Azad Jammu and Kashmir (AJK) and two in Islamabad.
existing industrial zones including Lahore,
The government has also announced an incentive
working on a new textile package to increase revitalization of textile and garment cities, Faisalabad, Karachi, Multan and Sialkot for package for investors for establishment of industrial
exports. This was disclosed by newly-elected unnecessary import of textile goods, increase in maximum output. Steps will be taken to make these zones. According to documents, the incentive
parliamentarians, including Mr Farrukh, Mr Habib, Mr cotton yield and production of long staple cotton, zones fully operational and all issues being faced by package includes provision of land plot on
Raja Riaz Ahmed, Mr Khurram Shahzad, Mr Nawab SME development, pending liabilities, tariff the textile stakeholders will be addressed installments (50 percent down payment and
Sher Waseer and Mr Faizullah Kamoka. They said, rationalization and regulatory regime. transparently without any zone discrimination or remaining 50 percent in four biannual installments
“We are duty bound to resolve issues being prejudice. Multi fiber production based industries will basis), markup support at 50 percent of the markup
confronted by the city in general and the business APTMA spokesperson highlighted that the growing be given special focus. (to a maximum of 5 percent) to be provided by
community in particular. We will make efforts in and trade deficit can solely be met by fashioning an • Training courses of stitching, weaving, spinning respective governments on the loans taken in
outside the assemblies.” They said that the payment export led growth policy. Therefore, those advocating and ginning will be tailored to fulfill the textile industry Pakistani currency for financing the project, freight
of refund had been pending for the last many years for the support of local industry don’t seem to be needs and human skill development. Fashion design subsidy at 50 percent on the inland transportation of
and hopefully it would also be settled once for all by well-wishers of Pakistan as well as the government, the global leader. Allied industries which act as proposed gas price is USD 6.5/mmbtu and institutes will be encouraged to introduce fashion plant and machinery for installation in/development
December 2018.Furthermore, they also assured that since the restoration of competitive advantage of the supportive industries for the value added textiles will electricity cost is USD 7.5 across the board. brands in international markets. of any of the priority SEZ, one window operation, the
the railway level crossing of the Faisalabad Dry Port export led industry must be regained, the share be treated as subsidiary export oriented industries. • An unconditional five year extension of the current • Marketing plans will be introduced by the PTI developer shall be allowed to purchase gas,
Trust would be opened very soon. In this connection, which has been long lost in the international The export sector cannot survive without textile relief package (DLTL). Government through trade delegation in electricity and other utilities from utility providers in
Railways Minister Sheikh Rasheed will be invited to marketplace. The anti-export approach has already strengthening the allied industries. Steps will be • An immediate release of all blocked refunds Pakistan/Abroad, performance of commercial counselors, bulk and supply the same to the enterprises at rates
visit Faisalabad as early as possible. witnessed a decline in Pakistan’s exports to $20 taken to ensure that all required raw material/input is including Income Tax, Sales Tax and others in the reform in PTAs and FTAs, made in Pakistan brand, that are duly notified by Special Economic Zone
billion from $35 billion in 2016-17. produced or manufactured in Pakistan to the extent form of negotiable instruments or cash will be introducing eBay, Amazon, Alibaba in Pakistan, Authority (SEZA) in consultation with stakeholders,
Textile division has identified three pressing export of economic viability. ensured by the PTI Government. The refunds will be engaging overseas Pakistan and visa facilitation. and to reduce cost of setting up, the developer would
impediments which includes pending liabilities of Rs The local industry can absorb the economic • The product mix of Pakistan will be transitioned to cleared and for the future refunds will not be build up also be allowed to rent out sheds for industrial use.
115 billion with the Federal Board of Revenue (FBR), stringencies but the exporting industry which is match the current international preferences of value to ensure industry liquidity as well. Since the PTI Government has come into power it
cost/ease of doing business and the levy of custom competing with the international competitors cannot. addition. In 2016, the increase in world fiber market • New measures and steps to make the export has paid Rs 25.7 billion to the textile sector under the Furthermore, Mr Iftikhar Ali Malik, Founder Chairman
duty on import of cotton for failing to achieve targets. He has also urged the Govt. to steer the economy consumption was 1.5% amounted to 99 million tons. oriented sector 100% zero rated since exporters are first phase of Prime Minister’s Trade Enhancement Pak-US Business Council, slammed the US decision
According to the textile division the total liabilities out of woods with energetic participation of the Oil-based fibers had the biggest share with 62.7%, paying sales tax on value addition accessories and Package by June 30, 2018. Rs 2.6 billion were to block 300 million dollars in aid said that Pakistan
with FBR are around Rs 115 billion including Rs 45 industrial associations so as to line the priorities. The cellulosic and protein based fibers consist of cotton no refund is made. disbursed to the textile sector in first two months needs immediate direct access to US markets and
billion sales tax, Rs 9.22 billion custom duty export industry associations should be leading the (approximately 24.3%), wood based cellulose fibers • The State Bank of Pakistan will regulate currency during Phase II from July 1 to August 31. The not aid as it has suffered irreparable colossal
drawback, Rs 25 billion PM package, Rs 32 billion to proposed Business Advisory Council in order to (approximately 6.6%, other natural fibers based on economic fundamentals and not by government has also given relaxation on the import financial loss for playing frontline role in the war on
implement textile policy 2009-14 and Rs 3 billion encourage new investment and enhance exports. He (approximately 5.3%) and wool (approximately 1.1%). finance ministry based on political parameters. The of textile machinery for the modernization of industry terror and US must support Pakistan to achieve its
textile policy 2014-19. also mentioned that the Business Advisory Board • Special focus will be given to ensure continuity of direct shipment model will be supported. and to enhance the capacity of the sector. The economic prosperity and self-reliance.
ought to be chaired by the prime minister on Generalized System of Preferences (GSP) plus • Despite existing research institutes, the average government has given priority to facilitating the textile
Textile division has proposed the payment of quarterly basis to oversee the decision status of Pakistan Lobbying in the EU will be yield of cotton crop is dropping. Research and sector and helping it gain competitiveness in order Mr Iftikhar Ali Malik said, “To win the war in
pending liabilities, incentivizing investment in implementation and for performance reviews. strengthened by foreign missions with the help of development will be enhanced in the cotton sector to to enhance the country’s exports. The Ministry is Afghanistan, America needs Pakistan for supply
machinery for export led industry, export trade regulatory authorities in Pakistan. Social introduce genetically modified seeds, production of offering multiple training courses to focusing on routes as well as to negotiate a lasting settlement
diversification, import substitution, special rates for For the development of the Pakistan textile sector, compliance is the major factor of GSP Plus status. organic cotton will be encouraged as well as different areas of textile sector to enhance the and peace in Afghanistan. The relationship between
SMEs specially for ginning, power loom, garment Pakistan. Mr Zafar Iqbal Sarwar from, PTI Strict action will be taken to ensure assurance of qualitative and certified pesticides and capacity of its workers. Garments, fashion, apparel the U.S. and Pakistan could worsen further, if the
stitching and facilitation for international business Government has come up with its textile policy which waste/environmental technologies and enforcement it will be ensured that the right prices are paid to the design, cutting for lingerie making, line supervisory Trump Administration follows the decision to cut off
linkages and JVs. covers most issues regarding industry growth and of social compliant laws. Furthermore, public private farmers. skills and knitting machine operators training are the aid to Pakistan.” He further added that the USA
country exports. partnership will be encouraged. • Facilitative structure such as the international areas of these capacity building courses. The should remove the bottlenecks in bilateral
Textile division enlisted many reasons for not • Reduced cost of production by decreasing energy accredited labs will be encouraged to bring their training program’s main objective is provision of investment treaty and efforts should now be made
achieving the targets including lack of skills Key Features of the Proposed Textile Policy costs including electricity and gas. The policy will 100% testing facilities to Pakistan and sustainability skilled workforce to make textile industry more on signing a free trade agreement (FTA) at the
development, infrastructure, product and market Following are the key points of the policy: align the price of gas and electricity provided to the will be promoted. competitive. earliest and it was now imperative that the USA
diversification, compliance, cotton standards, cluster • Improvisation of the textile sector of Pakistan by industry, with the price paid by regional competitors • Europe is diverting to Green Product Procurement should offer same package and incentives which it
development, cost of doing business & ease of increasing the value-added exports and becoming to provide the industry a level playing field. The (GPP). Special focus in Pakistan will also be given Special Economic Zones offered to Bangladesh and Sri Lanka in textile exports,
A total of 46 potential sites have been identified in such as duty concessions and market access.
August/September 2018 August/September 2018