‘Export package to be released within a year and half’

KARACHI: Ministry of Textile federal secretary Hassan Iqbal has said that the Prime Minister’s package of Rs180 billion, announced in January 2017, would be provided as incentives to the whole export-oriented industry within a year and half.

Addressing the members of various textile associations at Pakistan Hosiery Manufacturers Association (PHMA) House on Thursday, the federal secretary said Rs140 billion would be given to the export-oriented industry as incentives, while Rs40 billion would be provided in various rebates. “Industry could not understand the package clearly,” he said.

Earlier, textile exporters said it was a package of Rs400 billion, of which only Rs38.6 billion were released. The secretary said Rs3 billion were released in different rebates before June 30 despite of no sanctioned budget for them while Rs4 billion were released by the finance division on July 26.

Iqbal said, “Exports in June increased by 16 percent, which could have increased in May too, but remained low because of the transporters strike.”

The secretary of the Ministry of Textile also said cotton production would be higher this year, as crop area increased by around 24 percent in Punjab, and Sindh also did well with completing the targeted sowing despite of having more sugar mills. This year, cotton has been sown in Khyber Pakhtunkhwa and Balochistan provinces as well.

Iqbal said Pakistan could not ban export of raw cotton and yarn, as Pakistan’s textile sector was involved in 12 different chains of textile exports and banning such items was not possible.

He agreed that cost of production was higher in Pakistan as compared to the competing countries and added that exporters should be given a level playing field.

Talking on refunds stuck with the Federal Board of Revenue (FBR), he said the board had informed that the refunds of below Rs1.0 million were scheduled to be provided by July 15, while higher refunds would be cleared by August 14 this year.

Earlier, Jawed Bilwani, convener, Pakistan Apparel Forum, gave a detailed presentation comparing Pakistan’s textile sector exports and cost of production with the competitors.