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Related Keywords: fabric, garment, Pakistan textile industry, Sales tax, textile machinery, Textile Ministry, textile policy, yarn, zero-rated custom duty

As the textile policy (2009-14) formulated by the previous government will end on June 30, 2014. The Pakistan government is contemplating to impose 17 percent sales tax on import of textile machinery on expiry of the current facility ending in June, which is covered under the zero-rated custom duty and sales tax regime. Also the 2 percent sales tax on yarn, 3 percent of fabric and 5 percent on garments would be raised to 17 percent in next two year.

Related Keywords: cotton yarn import, ECC, Pakistan textile industry, textile export

The Economic Coordination Committee (ECC) of the Cabinet, which met under the Chairmanship of the Federal Minister for Finance Mohammad Ishaq Dar last week, has decided to withdraw SRO 15(I)/2010, which exempted cotton yarn import from custom duty of 5 percent, in order to check import of cotton yarn.

The value added textile, which contributes around 80 percent to Pakistan’s overall textile exports, has expressed disappointment on the withdrawal of the duty exemption on cotton yarn import as it would negatively affect the export of value-added textiles from Pakistan.

Related Keywords: Pakistan textile industry

Pakistan’s economy is directly linked with the textile industry as it contributes more than US $ 13 billion in the country’s total exports. According to the Federal Minister for Textile industry Abbas Khan Afridi, if the textile industry grew, Pakistan will make progress and hence the textile ministry plans to double its textile trade volume in coming years.

Related Keywords: gas supply, Pakistan textile industry

Pakistan textile industry has been facing gas and power supply issue is the affecting the performance of the industry. The government need to act on this issue immediately as it has no other alternative but to assure uninterrupted gas and power supply to textile mills in an effort to help sustain the 15% growth in exports that the industry has been posting since January.

Related Keywords: Pakistan textile industry, technology upgradation subsidy

Pakistan textile industry looking to its Ministry of Finance releasing fund which was earmarked in the textile policy 2009-14 a Rs. 118 billion for lower interest subsidy for technology upgradation. In fact, the textile ministry has not even registered businessmen for the scheme.

Related Keywords: GSP Plus status, Pakistan textile industry

Pakistan gets backing from Germany in the GSP plus status. The German Ambassador, Dr Cyrill Nunn said that more cooperation between Germany and Pakistan can be ensured by removing hurdles in export credit guarantee, security situation, vocational training for skill development, energy supplies and implementation of social compliances by Pakistan.

The 30 percent increase in textile export orders in Heimtextile to Pakistan is an encouraging sign so far as the GSP plus facility for Pakistan is concerned.

Related Keywords: cotton textile, Pakistan textile industry

Punjab-based textile industry unable to operate to the fullest capacity, due to the prevailing energy crisis, despite holding the GSP plus status from the EU since January 2014. This province is a major contributor to cotton production, which the textile industry consumes by and large and strengthens the rural economy.

Related Keywords: Pakistan textile industry, Yarn dumping

Pakistan textile sector has started raising alarm over yarn being dumped from India. A member of textile sector has expressed his concerns to Secretary Textile Rukhsana Shah regarding the dumping of yarn by the Indians.

Dr Mirza Ikhtiar Baig, former advisor to the Prime Minister on textile, urged the government to impose countervailing duty on the import of yarn from India.

Related Keywords: cotton production, Pakistan textile industry, textile exports

The Pakistan textile industry has infrastructure, finance, expertise and manpower to increase its export and achieve the GSP Plus targets set. The industry is convinced it can earn $1 billion through additional exports to the EU. However, it may not be able to perform, as required, due to non availability of certain raw materials, like cotton. If cotton production is not stepped up, it could prove to be weakest link in the whole scheme of things.

Related Keywords: Pakistan textile industry

Pakistan government to work out comprehensive long and short terms strategy plan for the revival of Textile industry in the country and also want to get on-board all stakeholder for initiating the modern management system to get more production and advantage on low lost production.

Federal Secretary, Ministry of Textile Industry, Rukhsana Shah said talking to APP, she stressed the need to modernize the industrial tools and equipped the man power of local industries with innovated skill and technology.