Page 5 - November/December-2019

05

Merger of textile, commerce

divisions; Pak China FTA phase 2

delayed; Global trade slips to lowest;
Editor-in-Chief
Yousaf Fareed power tariff issue to the industry

Editor The textile industry is discontent return, the textile industry, being
Hassan Saeed with the government’s decision to the largest export, needs to do its
merge the federal commerce and part for value addition in every
Sub-Editor textile divisions. A decision made sector – from the end product to
Mehwish Sheikh without taking stakeholders on the quality of material being used.
Shagufta Riaz board. As a result of this merger,
Ammar Sheikh 19 sub-bodies of seven ministries Global trade has dipped to its
Junaid Akhlaq would be merged and nine lowest in history with estimated
subordinate departments of five global GDP growth at 2.9% and
Advisory Board: ministries would be transferred to projected to remain around 3% for
Dr. Tanveer Hussain other ministries, also abolishing 2020-21, down from last year’s
Dr. Muhammad Tausif five departments of three 3.5% rate, with little hope of
ministries. improvement. China’s growth too
Marketing Manager is to slow down to 5.5% by 2021
Sana Sadiq Textiles are Pakistan’s main and is shifting its economy from
Saeed Ahmed exporting industry and a separate exports and manufacturing to
ministry for it had been formed consumption and services. India’s
Layouts after a lot of efforts. The different growth policy will help it
Faizan Khan government should reconsider the rise, but won’t be able to substitute
decision and listen to the China in traditional manufacturing.
Marketing Incharge numerous associations voicing Reducing policy uncertainty, rethinking
Abdul Haseeb their concerns. fiscal policy, and acting to on issues of
digitalisation and climate change, can
Address The second phase of the reverse the current trajectory and
C-302, City Towers Pak-China Free Trade Agreement ensure future growth.
Main Boulevard, Gulberg II (FTA) will take effect from January
Lahore-Pakistan 1, 2020 after delays in approval Abdul Razak Dawood has assured
and protocols from China. The APTMA that he would speak with
Phone: + 92 42 35 788 700 Pakistani textile industry will get a the PM on the power tariff
Fax: + 92 42 35 788 700 boost in exports to China and adjustment issue after the
Pakistan will get the same association complained of DISCOs
Email: info@textalks.com concessions enjoyed by ASEAN charging adjustment tariffs over the
Skype: textalks countries. In the first phase, local dollar-based 7.5 cents/kWh tariff.
The fixed tariff was intended to give
manufacturers had complained of the export sector edge over the
www.textalks.com imbalance, shifting towards the regional competition, but the
Chinese side. Under FTA-II, both adjustments took the power tariff
countries will liberalise 75% tariff over the industries of other regional
lines, covering 313 tariff lines, with players. This not only negates the
1,760 or 25% products categorised incentives initially given by the
as protected tariff lines. The FTA is government, but puts the industry
a good effort by the government to in a state of uncertainty about
help boost the country’s exports. In pricing and costs.

November/December 2019