Textile sector needs incentives immediately

APTMA believes govt will accept many of the demands

KARACHI: The government is considering different options to support the dwindling textile exports, but this is not enough, the textile sector wants the government to make decisions quickly, All Pakistan Textile Mills Association (Aptma) Chairman Tariq Saud said on Monday.

“We have urged the finance minister and other officials in recent meetings to announce the textile package immediately. Whatever the incentives it can offer, it should offer now,” said Saud while speaking to The Express Tribune.

Textile industry in its worst patch in history

Aptma, arguably the most powerful business lobby in the country, is continuously pushing the government to announce different incentives for the textile industry to make it competitive in the region.

Last week, it urged the government to immediately extend the Drawback of Local Taxes and Levies scheme to the entire textile value chain and offer export refinance facility to the spinning and weaving sub-sectors.

It also demanded that the government introduce safeguards through tariff and non-tariff measures against inroads of synthetic yarns and fabrics into the domestic market, and provide incentives for exports by matching the regional support package.



“We believe the government will accept many of our demands, because something has to be done to stop the declining textile exports,” Saud said.

Textile exports of the country remained under pressure in the first five months (July-Nov) of the current fiscal year.

They dropped to $5.2 billion in July-November, down 8.4% from $5.7 billion in the same period last year, according to the Pakistan Bureau of Statistics (PBS).

Arif Habib Limited analyst Ahmed Lakhani concurred that the government would announce some incentive. “The challenge for the government is that it has to pacify textile exporters by giving them some incentives, while it simultaneously juggles the revenue target.”

Published in The Express Tribune, December 29^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.