PEW Seeks More Incentives For Textile Sector

PEW Seeks More Incentives For Textile Sector
The Pakistan Economy Watch (PEW) on Sunday lauded government’s move to provide facility of zero-rating for the textile sector but termed it insufficient in the current scenario.
It asked the government for more relaxations so that Pakistan could regain its position in the international market.
“$14 billions textile industry playing critical role in the national economy is crumbling due to multiple reasons which need immediate government intervention,” urged Dr Murtaza Mughal, President PEW.
He said that energy crisis, incoherent policies, regional competition, undue taxation etc, had taken toll on this industry that was providing jobs to 3.5 million people.
He said that 57% exports were linked to textile industry; its share in manufacturing was 46% while it employed 38% of the urban labour.
He said that share of textile in the GDP was 9% which would shrink creating problems for everyone including tens of millions of farmers depending on cotton crop, he added.
“Other countries are providing subsidies to their textile sector and frequently devalue currency to get a foothold in international market which has left local sector unattractive for investors,” he said urging the government to review exchange and monetary policy and refund mechanism as textile sector was awaiting refunds worth rupees 1.10 trillion for a long time resulting in severe liquidity problems.
Murtaza Mughal said that around 33% textile mills had been closed depriving one million people of their jobs and if the situation remained unchanged more bad news would follow.