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News Clips 14 January, 2016

[ PRGMEA urges government to solve industrial sector's problems ]
[ Govt urged to take steps for enhancing exports ]
[ Industry wants petrol price at Rs40/litre ]
[ PRGMEA demands preventive measures for textile export ]
[ Textile woes: PRGMEA expresses concern over EU-Vietnam FTA ]
[ PRGMEA urges government to address all issues to enhance export ]
PRGMEA urges government to solve industrial sector's problems   [ top ]

Business Recorder, January 14, 2016
Pakistan Readymade Garments Manufacturers and Exporters Association's (PRGMEA) chairman Shaikh Mohammad Shafiq on Wednesday demanded of the government to take drastic measures for enhancing exports as well as for addressing problems of the industrial sector on top priority. He said that garment exporters are facing liquidity problem in the wake of delays in their sales tax refunds and as such their demand of zero rating for the textile sector must be acceded to as without which the industry cannot survive. 

He deplored that the government had not given any price cushion to the consumers for many months despite the fact that oil prices have been falling constantly in the international market since long and it was at its 12-year-low price on January 12, 2016. He said that all those people associated with readymade garments business were making their all-out efforts to enhance export in the larger national interests, besides proving huge employment in the sector. He also urged the authorities concerned to immediately implement power tariff cut mechanism to ensure deduction of Rs 3 per unit for the value added export-oriented industry as per Prime Minister Nawaz Sharif's announcement. 

Govt urged to take steps for enhancing exports   [ top ]

The Nation, January 14, 2016
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Chairman Shaikh Mohammad Shafiq has said that government has not given any price cushion to the consumers for many months despite the fact that oil prices have been falling constantly and currently it is as low as $30 per barrel now. 

He said the government should take drastic steps for enhancing exports and addressing the problems of industrial sector on top priority basis. Despite certain hurdles, the business community engaged with readymade garments was making strenuous efforts for enhancing the export in the larger national interests and provided huge employment in this sector, he said.

However it’s a drop in the Ocean the value added export oriented industrial sector of the country has still urged the authorities responsible for the implementation of the power tariff cut to ensure deduction of Rs 3 per unit for industries, as announced by Prime Minister Nawaz Sharif.

He further said that garment exporters’ complain of delays in sales tax refunds. Facing a liquidity crunch they reiterated the demand of zero rating for the textile sector. Without zero rating facility industry could not survive, he added. 

Industry wants petrol price at Rs40/litre   [ top ]

Daily Dawn, January 14, 2016
KARACHI: Industry leaders have sought a substantive cut in petroleum prices in line with historic low crude on the world market. 

Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Chairman Shaikh Mohammad Shafiq said on Wednesday that the government should cut petroleum prices by Rs20 per litre as international crude was hovering around $31 per barrel. 

He said that the government should also take measures for arresting declining trend in exports and solving problems confronted by the industry. 

He deplored that the Rs3 per unit cut in electricity tariff announced by the prime minister for industry had not been implemented yet. 

Lasbela Chamber of Commerce and Industry President Maqsood Ismail said that global crude prices were constantly falling but the government remained reluctant to pass on the relief to masses. 

“There should have been immediate reduction in prices of not only petroleum products but also electricity and transport fares including trains and airlines,” he asserted. 

He termed the increase in sales tax on fuel as unjustified. “Industries are closing down due to unbearable cost of production and energy crisis,” Ismail warned. 

He asked the government to bring down the petrol prices to Rs40 per litre. 

PRGMEA demands preventive measures for textile export   [ top ]

Daily Times, January 14, 2016
LAHORE: Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA) has cautioned the government to address the issues of value-added textile sector, as the drop in exports may widen further due Vietnam-EU FTA.

PRGMEA Chief Coordinator Ijaz Khokhar asked the government to take preventive measures, following the EU and Vietnam reaching a free trade agreement, as the emerging economy could capture Pakistan's export market, which has already decreased due to high energy cost, discriminating import duties on the industry's raw material and a decline in cotton production.

He said that the exports of textile and clothing have been declining sharply during the last six months along with low cotton yield in Punjab. PRGMEA chief coordinator asked PM Nawaz Sharif to personally direct the policy makers for reduction in all input costs otherwise the export-oriented industries would not only close down their operations but millions of workers would also lose their jobs. He said that the PM had committed to hold meetings with export-oriented industries on quarterly basis but no such meeting was held so for. 

Textile woes: PRGMEA expresses concern over EU-Vietnam FTA   [ top ]

The Express Tribune, January 14, 2016
LAHORE: The Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA) has cautioned the government to address the issues of the value-added textile sector, as the continued drop in exports may further widen due to Vietnam and European Union’s (EU) Free Trade Agreement (FTA).

PRGMEA Chief Coordinator Ijaz Khokhar asked the government to take preventive measures as Vietnam can capture Pakistan’s export market, which has already reduced due to high energy cost and discriminating import duties on industry raw material. The exports of textile and clothing have been declining sharply during the last six months (July-Dec) of 2015.

Khokhar asked PM Nawaz Sharif to personally direct policy-makers to work for reduction in input costs. 

PRGMEA urges government to address all issues to enhance export   [ top ]

Business Recorder, January 14, 2016
Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA) has urged the government to address all issues of value-added textile sector immediately, as the continued drop in exports may widen further due to Vietnam-EU Free Trade Agreement (FTA), massive decline in cotton production and high import duty on yarn. 

PRGMEA Chief Co-ordinator Ijaz Khokhar asked the government to take preventive measures following the EU and Vietnam FTA, as the emerging economy can capture Pakistan export market, which has already shrunk due to high energy cost and discriminating import duties on industry raw material. The exports of textile and clothing have been declining sharply during the last six months (July-December of 2015-16) along with low cotton yield in Punjab. 

PRGMEA chief co-ordinator asked PM Nawaz Sharif to personally direct policy makers to work for reduction in all input costs otherwise the export-oriented industries would not only close down their operations but millions of workers would also lose their jobs. He said that the PM had committed to hold meetings with export-oriented industries on quarterly basis but no such meeting was held so far. 

PRGMEA chief co-ordinator said that this is because of the fact that textile sector is burdened with multiple taxes with high cost of inputs, tariffs of gas, electricity, raw material, and is further harassed due to short supply of all these most essential utilities, he added. He further said country is facing almost 35 percent shortfall in cotton production as cotton bales arrival has registered nine million bales against the set target of 14 million bales. Despite huge shortfall of cotton, 10 percent regulatory duty on cotton yarn import from India is not understandable which will not only to encourage cartelization but also squeeze raw material availability in the country, he added. 

He said, "Also there is no regulatory duty on yarn import from India, as the spinning sector has already booked orders for import of two million bales without any regulatory duty. This is discriminatory policy which will hurt garment export very badly." "Vietnam is emerging market of garment and has become a major threat particularly for Pakistan textile sector after striking FTA with EU, as the country is already exporting US 23 billion dollars garments against Pakistan's just US five billion dollars textile goods," he mentioned. 

Ijaz Khokhar said that Vietnam has achieved the milestone amid huge foreign direct investment due to attractive policies, which will surpass even the Bangladesh textile export of US 27 billion dollars, because the country has fixed the target of 30 billion dollars textile export for current fiscal year. 

This agreement is the first of its kind that the EU has concluded with a developing country, which will definitely benefit from its FTA on very nominal duties. Khokhar feared that Vietnam will capture Pakistan textile export market despite having status of GSP Plus because Pakistan is not availing this facility due to very limited product lines mainly due to strict import policy of government. He underscored the need for formulation of sector wise policies with the consultation of stakeholders for bringing boom in export of the country. He said that it would not only help in increasing exports but also supportive in minimising problems confronted by the business community.