Govt urged to provide gas to lure investment

KARACHI: Textile manufacturers have asked the government to immediately pay tax refunds and provide gas on a priority basis in order to increase exports and attract foreign investment in the sector.
CEO Trade and Development Authority of Pakistan (TDAP) S M Muneer, at the International Textile Conference & Awards 2015 on Saturday, said the government should immediately pay sales tax refund to business community, which has become a hurdle in the economic growth.
“If government refunds, we will take exports to US$5 billion this year,” he said, adding Pakistani companies should also introduce brands on local and international level besides investing in research and development.
Chairman Towel Manufacturers Association Pakistan (TMA) Mehtabuddin Chawla said government is engaged to sign understandings with countries like Singapore, Malaysia and Turkey, which will allow zero percent custom duty on exports, while adding assurance by Prime Minister to facilitate investments is an encouragement for business community.
However, He objected that India is offering 30 percent equity on purchase of machines for export units while rest of 70 percent amount will be paid back during 10 years with no interest, while in Pakistan the textile manufacturers have to pay nine percent interest.
He added that Media also spreads wrong perceptions about Pakistan and requested the media houses to report issues on domestic television only.
A leading industrialist Dr. Mirza Ikhtiar Baig said Pakistan during last 15 years has become a hub for denim and welcomed the foreign investors to do business with complete peace of mind.
He briefed that this sector account for 55 percent of total exports with volume of US$13 million and provides 38 percent jobs with contribution of 10 percent in GDP.
“We are fourth top country in production of cotton but unfortunately share of our textile industry exports in the world is just two percent,” he lamented.