Govt considering incentives for textile industry

Govt considering incentives for textile industry: Farooq

The Daily Time, Thursday, January 1, 2009

* Textile minister says Bt cotton gives Pakistan’s seeds 40% higher yield per acre

ISLAMABAD: Federal Minister on Textile Industry Rana M Farooq Saeed Khan on Wednesday said that the government was preparing very lucrative working paper to consider some incentive and relief for the textile industry particularly export oriented value added units.

He said this while addressing a meeting at the residence of Rana Muhammad Mushtaq Khan Member CEC PHMA and Vice Chairman, Garment City Faisalabad, along with representatives of FCCI, PHMA, PTEA and other textile value added sector members.

Commenting over the severe gas outage and power load shedding faced by the textile industry that he said that he had advised MD, SNGPL, and WAPDA authority to arrange a meeting under his chair with representatives of the FCCI, PHMA and PTEA to work out new strategy for the continuous supply of gas and power to the textile industry especially in peek winter season.

For improvement of cotton production, the minister said that by cultivation of Bt cotton, Pakistan’s seeds are given 40 percent higher yield per acre. India had successfully acquired their technology and had improved their cotton production significantly. The participants of the meeting were of the view that in other countries of the world the exporters were given preferential treatment and provided raw material, inputs and utilities at concession rates enabling them to compete successfully in international markets.

They were also of the view that neighbouring countries like India and China were providing visible and invisible incentives to exporters. So the government of Pakistan should continue 6 percent Research and Development (R&D) supports for the garment industry, which was not a part of any subsidy.

They also said that the gas and power shutdown in Faisalabad have severely affected the textile industry and export orders were going to neighbouring countries. staff report