Tuck On | All About Technology and Texttile Industry

Ginners receive financing for machinery up-gradation

2009-12-28T13:45:00.000-08:00

The cotton ginning sector has reasons to rejoice. The apex bank, State Bank of Pakistan announced that it would provide financing facilities to the cotton ginning factories to modernise their machinery.

This credit facility is available only for replacing or modernizing machinery and equipment, said a spokesperson of the bank and will be effective as on date to December 31, 2010.

The financing will be available for equipment and machinery sourced from domestic companies. However, credit will also be made available to purchase new generators up-to a maximum capacity of 500 KVA.

The loan will be repayable within a maximum period of seven years, which includes a grace period of six months. Locally manufactured machinery using more than 80 percent imported components shall not be eligible for financing.

The rate of re-finance up to 3 years would be 6 percent with bank’s spread of 2 percent and end user rate of 8 percent. Similarly over 3 years and up to 5 years the rate would be 6.50 percent with bank spread of 2.50 percent and end user’s rate of 9 percent.

Over 5 years and up to 7 years rate would be 7 percent with bank spread of 3 percent and end user’s rate of 10 percent. Financing rates will be subject to revision on yearly basis effective from July each year.

Customs duty on imported textile machinery withdrawn

2009-12-28T13:43:00.000-08:00

The Federal Minister for Finance Senator Mr. Shaukat Tareen took a decision to withdraw customs duty on import of textile machinery and equipment.

Mr. Muhammad Mansha Churra, Acting President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) lauded this decision, as zero-rated duty on import of textile machinery was the major demand of Pakistan textile industry.

The industry has been facing several problems, such as steep fall in exports of textile products and expansion in the sector has totally halted to a stop.

Pakistan : Downward trend of leather exports in first six months

2009-12-28T13:41:00.000-08:00

During first half this fiscal, declining trend has been witnessed in exports of leather goods.

According to figures released by Federal Bureau of Statistics (FBS), a decline of 30 percent has been seen in leather exports during July-December 2006.

During this period, exports of leather manufacturers stood at US $261.734 million over $378.748 million in same period last year.

During July-December 2006, exports of leather footwear achieved $49.150 million over $59.430 million during corresponding period of previous year, a decline of 18 percent.

While, leather garment exports stood at $188.245 million compared to $268.843 millions over corresponding period 2005, a decline of 29.98 percent.

Similarly, exports of leather gloves reached $57.287 million compared to $71.681 million during the same period of last fiscal year.

In December 2006, country exported leather goods worth $40.419 million as compared to $66.141 million in the same month of last year.

Even Customs Rebate of 5.17 percent given by the Government has been cut down to 3.22 percent during fiscal year 2005-2006.

Pakistan : Textile sector exports may go off target

2009-12-28T13:39:00.002-08:00

The major industrial sector in Pakistan, textile is unlikely to reach exports target for year 2004-05.

The Ministry of Commerce and Export Promotion Bureau had anticipated the target of textile exports about $9.2 billion after talks with textile stakeholders.

The textile exports reach $830 million in the month of May 2005, depicting of elevation when matching to the exports of $782 million exports in April 2005 and 650 million dollars in May last year.

An Export Promotion Bureau official informed that the textile exports are suspected not to cross the fixed hurdle of one billion dollars.

The interim report of textile exports for the month of June would be available in next couple of days, he added.

The EPB official explained that in 11 months of fiscal year 2005 the exports of cotton yarn, fabrics, apparel & clothing and made-up textile products have been substantial increased.
Total exports climb by $12.72 billion in 11 months of last fiscal as against $10.87 billion in the same period of its previous fiscal year, indicating an total jump of $1.85 billion.

Sources in textile industry informed that the factors behind the incredible rise are abolition of quotas and the increase in domestic cotton crop, besides decline of 40-50 percent in its costs, proved favourable for the domestic industry.

However, Pakistani exporters has to face cutthroat competition with its other regional majors like China, India and Bangladesh, but the competitiveness and quality in yarn, fabrics, clothing, knitwear, bed linen has been enhanced the exports in last fiscal year.

Pakistan : Leather product exports drop 63%

2009-12-28T13:39:00.000-08:00

In January 2007, exports of leather garments, leather gloves and leather footwear declined by 63.34 percent compared to previous month.

During this period, exports volume and value of leather garments decreased by 61.25 percent and 58.02 percent, respectively.

Total exports of the leather manufacturers reached about US $20.697 million over $40.419 million in December last year.

Exporter shipped leather garment worth $16.295 million in January 2007 over $33.389 million in December 2006.

Similarly, exports of leather gloves stood at $3.909 million over $4.944 million in December 2006, a decline of 70.73 percent in respect of quantity and 71.77 percent in term of value.

Even total exports of other leather manufacturers also declined as it reached $0.493 million as against $2.086 million in December 2006.

Exports of footwear also fell by 23.53 percent in same period as total exports stood at $6.127 million over $6.127 million in previous month.

Pakistan : Textiles export drop as tough times ahead

2009-12-28T13:38:00.001-08:00

Textile exports particularly in case of cotton fabric, bed wear, towels and readymade garments dwindled during January-May 2006.

Government’s ban on tent exports after the earthquake and cheaper cotton compared with PSF were responsible for decline in exports of tents and synthetic textiles respectively.

Due to stiff competition from India, China and Bangladesh, all added up to stall exports.

Further, the anti-dumping duties imposed on bed linen by the EU at 13 percent until May, though reduced to 5.8 percent, is yet to be realized.

Mounting costs of oil and gas are likely to affect margins of textile companies for the near future.

Pakistan : Textile goods exports up 6.58% to $ 8.039bn

2009-12-28T13:37:00.000-08:00

Textile products export for the country registered rise of 6.58 percent at $8.039 billion in the last fiscal against the exports of $8.568 billion in the previous fiscal year.

The export of cotton yarn down 3.42 percent, export of cotton cloth up 16.51 percent, knitwear exports up by 11.47 percent, bed wear exports up by 1.77 percent, towels exports up by 24.40 percent, tents and canvas products exports down by 12.40 percent, ready-made garments exports up by 11.60 percent, exports of art, silk and synthetics textiles down by 36.12 percent and textile made-ups registered an rise of 14.13 percent in the last fiscal 2004-05.

Raw cotton exports in the last fiscal stood at $129.015 million against $ 47.671 million indicating an rise of 133.54 percent over the previous fiscal year.

The export of tanned leather registered a increase of 17.73 percent reaching $296.319 million, up from over $251.693 million in the previous fiscal year.

However, leather exports recorded 18.53 percent in the last fiscal with exports of 491.102 million compared with the exports of $ 414.343 million in the previous fiscal year.

Pakistan : PHMA asks to restrict cotton yarn exports

2009-12-28T13:36:00.000-08:00

Jawaid Bilwani, Chairman of Pakistan Hosiery Manufactures Associations (PHMA) has requested Government to restrict export of cotton yarn to increase exports of apparel.

High exports of cotton yarn adversely affect production of value added apparel as it is main component required to make apparel, informed Jawaid Bilwani.

Value added apparels earn more foreign exchange than the cotton yarn exports and therefore, more emphasize has been given on apparel exports.

Pakistan : Knitwear exports have upper hand over Chinese quotas

2009-12-28T13:35:00.000-08:00

Knitwear exporters of Pakistan draw advantage from substantial Chinese quotas in certain products.

Following a decline earlier in the year, knitwear exports accelerated during May.

Exports during September amounted to 7.033 million dozen, a year-on-year rise of 11.1 percent.

From January to September, exports of knitwear amount to 53.397 million dozen, a year-on-year drop of 7.6 percent. September exports were also a record for the month.

In the non-knit apparel segment, exports boosted up during the same period, reaching 56.7 percent to 29.812 million square meters.

Apparel exports from Pakistan show competitiveness in cotton apparel and have been winning market share from China in some products.

Pakistan : Jute & polypropylene makers compete for order

2009-12-28T13:33:00.001-08:00

To obtain order of sacks for storing 5 million tons of wheat, jute mills and polypropylene manufactures are in competition.

Purchase of sacks will be an expensive job as about five hundred million of sacks with storing capacity of 100 kilograms each will be required for stocking wheat.

At present, a jute bag of 100 kilogram capacity will cost PRK60 to 70, while polypropylene bags are of PRK20.

However, Government prefers jute bags as they are environment-friendly and could be reused two to three times.

Moreover, those who are against polypropylene bags believe that it deteriorates quality of wheat, while those opposing jute bags claim that they fail to protect wheat from rats leading to loss of four to five percent of soaked wheat per annum.

Experts have urged the Government to conduct a detail study on cost and advantages before purchasing bags for stocking wheat.

At the time of harvest every year, Punjab Government usually procures 3 to 3.5 million tons of wheat.

Similarly, Food Department of Sindh and PASSCO procure one million tons each during this period.

Govt committed to value added apparel sector – Textile Minister

2009-12-28T13:32:00.001-08:00

The Textile Minister, Mr Rana Muhammad Farooq Saeed Khan, said that garments sector is considered the most profitable as compared to other textile sub-sectors and that the government is committed to make it centre of value added manufacturing goods.

He conveyed this message in a meeting with representatives of the apparel manufacturing sector. He said the importance of the clothing sector has been highlighted in the recently released textile policy, but lamented that the sector was allowed to languish since so many years.

He also said that the government is focusing on providing trained manpower and vocational training institutes are being set up for this purpose where modern and up-dated education and skill training would be imparted.

He added by saying that the government is committed to make apparel manufacturing as centre of value added manufacturing goods and for this purpose special arrangements would be made for fashion, designing, brand and especially marketing.

He concluded by saying that special incentives would be given, and product development centers would also be constituted for the promotion of this sector. The delegation also complimented him for announcing the first ever textile policy.

First ever Industrial Policy to be announced by year end

2009-12-28T13:31:00.000-08:00

Present government has the honor to formulate first ever Industrial Policy, after a long time, to promote industrial sectors of the economy which will be announced in a couple of months.

Mian Manzoor Ahmed Wattoo, Federal Minister for Industries & Production said this while addressing the business community at Islamabad Chamber of Commerce & Industry.

He said government was working on first ever comprehensive Industrial Policy for giving boost to this important sector of the economy in consultation with all stakeholders and accommodating their views and suggestions in the new policy. He asked the businessmen to give their proposals to make this policy more industry friendly.

On this occasion, he announced that a Marble City will be set up in Islamabad in collaboration with Pakistan Stone Development Company (PASDEC), which will give a boost to local marble industry.

He said government was giving priority attention to the promotion of SME sector which was considered engine of growth and a key source for job creation. He said SMEDA would be made more active to accelerate the pace of development of SMEs in the country.

Dilating upon energy crisis, Manzoor Wattoo said government was working on different options for meeting the energy requirements of the country including wind, coal & gas etc. He said country was facing a shortfall of 3000 MW while due to fault at Mangla power station; this shortage had gone up to 4100 MW. However, he assured that by end of July, industry will face no loadshedding while country will get rid of this problem by December this year.

Speaking on the occasion, Mian Shaukat Masud, President, Islamabad Chamber of Commerce & Industry (ICCI) highlighted business community issues. He said industry was in deep troubles due to multiple factors including power shortage, law & order situation, high interest rates and high production cost etc.

He said Ministry of Industries & Production had a key role to play in creating an enabling environment for industrial growth. He said Pakistan, with a consumer market of 170 million people, abundance of raw materials, cheap labor and entrepreneurship, was endowed with all the requisites to climb the ladder of industrialization and all it needed was a conducive Industrial Policy to become a growing industrial country.

He said large-scale manufacturing and textile sectors needed special packages for bringing them out of negative growth and government should work out such packages in consultation with business community to put industry on the path of growth. He said Islamabad was badly needed a new Industrial Estate as the existing Industrial Estates had saturated and sought the Minister’s help for accelerating the establishment of I-17 Sector Industrial Estate.

He said despite earning good profits, banks were providing no soft terms loans to industrial sector and government should come forward to ensure easy loaning facilities and tax relief measures for struggling industries.

APTMA welcomes step to supply uninterrupted gas supply

2009-12-28T13:29:00.000-08:00

The All Pakistan Textile Mills Association (APTMA) has thanked the government for taking the decision to supply uninterrupted gas supply for five days in a week.

It added that though closure of industries for two days in a week was very painful, it fully supported the government and the country in its hour of crisis.

This decision of the government will help save millions of jobs in the winter season as well as the export industry, which used to keep capacities idle in winter, due to shortage of gas.

APTMA has pledged its support to the government and its policies and said it is ready to make this immense sacrifice and share the shortage with all sectors and industries of the country.

Govt to be meticulous with policies for achieving GDP targets

2009-12-28T13:24:00.000-08:00

Government of Pakistan is planning to set the GDP growth target at around 7 percent for the forthcoming fiscal year 2008-09 against the achieved 5.7 percent of the current fiscal year.

Low growth of GDP, in this fiscal year, was largely due to decline in key sectors like agriculture; manufacturing sector; exports and foreign direct investment.

In an exclusive interview with Fibre2fashion, Nasir Jamal Director General-Media Ministry of Finance, said, “Pakistan needs a sustained macroeconomic stability, financial discipline and consistent and transparent policies for achieving targets for the next fiscal. Efficient management and structural reforms introduced in the recent past have brought about healthy changes in almost all sectors of the economy. A major breakthrough has been achieved in managing the domestic and external debt”.

Besides, Mr Nasir also affirmed that the Government has plans to provide relief to major industries from the ongoing inflation and policies will be adopted in the upcoming budget for the same purpose. Additionally, encouragement of industrial clusters, support for technology transfer and facilitation of import of power generating small units are some of the areas to be given priority in the budget. Fiscal and tax incentives for encouraging small medium enterprises (SMEs) will also be encompassed through increased allocation of credit for this sector.

In the agriculture sector, measures will be taken to improve cotton production that would help ensure availability of raw cotton on reasonable rates for the ginning industry as well as for the textile industry to increase production and ensure enhanced exports of textile products.

Pakistan : APTMA hails Government’s textile initiatives

2009-12-28T13:21:00.001-08:00

Prime Minister Shaukat Aziz has assured the delegation of All Pakistan Textile Mills Association (APTMA) of Government commitment of helping the industry in improving its competitiveness and productivity.

Aziz also stressed on the need to bring in innovation and research so that the industry could hold a big share in the world textile market.

He urged the private sector to benefit from the Government policies of liberalization, privatization and deregulation along with the procedural transparency and policy continuation which have boosted the economy and have created a positive atmosphere for the private sector.

Aziz informed the delegation that Government had launched 'Clean Cotton Project' to bring the cotton industry at par with the international acceptable standards even as he hailed the private sector for using new technology.

The APTMA delegation on its part thanked the Government for its favourable policies and continuous commitment to develop and upgrade textile sector in Pakistan. Textile Minister, Mushtaq Ali Cheema and other senior officials were also present during the meeting.

Pakistan : Govt plans policies to boost textile industry

2009-12-28T13:20:00.001-08:00

Mushtaq Ali Cheema, Federal Minister for Textile Industry, while attending a press meet on June 4, said that Government has decided to enforce policies to boost the textile industry’s export.

In order to face competition in the international market efficiently, the industry need to pay heed towards the development of skill, enhance productivity, manufacturing cost reduction.

The Textile Minister emphasized that the textile industry should organize itself and attract big investors or orders from abroad, so that the weaving sector, which is performing below its capacity, can flourish.

Cheema revealed that textile policies would be approved by the the first week of July.

According to the Minister, Government plans to introduce a complete policy for this industry so that all the sectors and sub-sectors should work in unison.

The Textile Ministry plans to establish garment cities within in next two to three years. The one in Karachi would start in Pakistan Textile City Limited and in Lahore it would be set up in Sundar Industrial State.

Textile exporters assured of implementing policy, LCCI

2009-12-28T13:18:00.000-08:00

The Chairman Senate Standing Committee on Textiles Gul Mohammad Lot has said that the government would ensure implementation of the Textile Policy in letter and spirit as the textiles is the biggest export-earning sector. He was speaking at the Lahore Chamber of Commerce and Industry on Wednesday. LCCI Vice President Faisal Iqbal Sheikh, former Chairman APTMA Punjab Akber Sheikh and Mohammad Ayub Skeikh also spoke on the occasion.

The Chairman said that the steps were being taken to help strengthen textile sector, boost exports and create new jobs besides shoring up textile sector and fetching the much-needed foreign exchange. He said such measures would help capital-starved exporters to increase their exports, and help revert the declining trend in exports.

He said that the government was taking all measures to remove regulatory bottlenecks in market access and improving information and communications technology. Gul Mohammad Lot said that the present government was also concentrating on bringing down the rate of markup and inflation to the single digit for the expeditious revival of the industrial sector.

He, however, expressed his concern over the shortage of skilled labour and sought the private sector’s help to overcome the shortage. Speaking on the occasion, the LCCI Vice President Faisal Iqbal Sheikh said that for the past several years Pakistan had been multiple internal and external challenges and the only way to get out of this critical state of affairs is to regain the economic stability which can be achieved through the revival of the industrial sector, especially the export-oriented textile sector.

The textile industry contributes 8.5% of the GDP and employs 38% of the workforce in the manufacturing sector. It is responsible for about 55% of total exports. Export of textile products has reached $ 10.62 billion in the year 2007-08 from $ 5.5 billion in the year 2003-04 i.e. an increase of $ 5.12 billion in value term or by 93% and it still have the potential to beat this rate of growth in future. The way international trade is evolving is neither free nor fair. There is continued downward pressure of unit prices of textile goods, while the raw material prices and cost of doing business are increasing drastically. Even though, Textile Industry of Pakistan is indeed passing through a very crucial juncture due to the prevailing socio-economic and political climate.

The Textile sector is exposed to extreme competition after the phasing out of quota besides facing resistance from developed countries. To increase competitiveness and quality of products, textile industry requires investment in technology for meeting the new challenges.

He said that over the last few years the textile sector had invested about $ 6.0 billion in modernization and higher value addition, but due to continuous rise in cost of doing business resulting from enhancement in the cotton prices, utilities, inflation and bank refinancing rate on exports, Pakistan is becoming uncompetitive and loosing share in the international market. He said that government needs to plan a strategy to identify and solve issues with a long-term perspective to meet the challenging tasks of the textile sector.

Lahore Chamber of Commerce and Industry

Islamabad hosts educational workshop on traditional crafts

2009-12-28T13:15:00.000-08:00

A series of workshop demonstrating a variety of specialized craft by connoisseur artists was hosted in Heritage Museum Islamabad on March 31.

The event whose first session started off with block printing and paper mache technique will continue till April 7.

Assisted by Cosmos Productions, the ‘Artisan workshops on skills training’ has been organized by Lok Virsa under its museum educational program.

Subject for the following sessions will be wax printing, wood carving, pottery, embroidery, lacquer work, and weaving.

These fabulous workshops aim to revive traditional skills by making the youth aware about the beauty of long-standing culture and practices.

The session on block printing and paper mache will be taken over by Ameer Bukhsh from Karor Pacca and Zulfiqar Ali Ghazi from Kashmir respectively.

Lahore is one of the biggest commercial centers for block printing and the art is known to depict animals, birds and floral patterns in arched frames and involve the use of traditional color combinations peculiar to the decorative style of Moghul tiles and paintings.

Bloch printing still remains as the only contemporary textile medium which retains its dependence on natural dyes.

Paper mache on the other hand, displays exquisite miniature designs and motifs on various articles like masks which are painted with vibrant colors, depicting intricate foliage patterns, natural scenery and hunting scenes and meticulous craftsmanship.

Pakistan : RMG, knitwear, leather garment exports down in July, says FBS

2009-12-28T13:11:00.000-08:00

According to the provisional figures compiled by the Federal Bureau of Statistics (FBS), exports from Pakistan during July, 2005 amounted to Rs.75,841 million (provisional) as against Rs.91,954 million (provisional) in June, 2005 and Rs.68,987 million during July, 2004 showing a decrease of 17.52% over June,2005 but an increase of 9.94% over July, 2004.

In terms of US dollars the exports decreased by 17.46% in July, 2005 $ 1,272,008 thousands (provisional) when compared with June, 2005 $ 1,541,117 thousands (provisional) but increased by 7.45% as compared to July, 2004 $ 1,183,766 thousands.

Main commodities of exports during July, 2005 were Cotton cloth (Rs.12,401 million), Knitwear (Rs.8,958 million), Bedwear (Rs.7,974 million), Readymade garments (Rs.6,827 million), Cotton yarn (Rs.5,423 million), Rice basmati (Rs.2,365 million), Towels (Rs.2,150 million), Madeup articles (including Other textile) (Rs.2,046 million), Leather garments (Rs.1,710 million) and Rice others (Rs.1,681 million).

The increase(+) / decrease(-) recorded in main commodities exported during July, 2005 over June, 2005 and July, 2004 is given below:-

Exports from textile sector decline by 12% in July

2009-12-28T13:09:00.000-08:00

According to statistics released by the Federal Bureau of Statistics, exports from the textile and apparel sector declined by 11.95 percent in July, when compared with the corresponding month of the previous year.

The sector exported US $800 worth of goods in July 2009, against $908 million achieved in July 2008. But amongst the decline in overall value, there were some product categories which were able to record a positive growth.

Exports of yarn grew by 13.18 per cent, art silk and synthetic textile was up 138.09 percent, made up articles also up by 0.22 per cent and other textile materials 32.96 per cent.

However, exports of raw cotton fell by 16.85 per cent, cotton yarn decreased by 3.21 per cent, cotton cloth 34.73 percent, cotton (corded) 80.41 percent, knitwear 11.98 percent, bedwear 14.87 percent and towels 15.74 percent.

Amongst other categories, shipments of tents declined 54.33 percent and clothing 6.98 percent.

Gas load shedding forces textile units to suspend work

2009-12-28T13:06:00.000-08:00

Gas load shedding for more than two days a week has forced around 200 units in the north regions to suspend their operations. This distressing situation led to representatives from All Pakistan Textile Manufacturers Association (APTMA) to rush to the Ministry of Petroleum and Natural Resources for assistance.

The industry in Lahore-I cluster as well as the industrial units in the region from Islamabad to Multan have been denied gas availability. Industry sources informed that, according to the gas load management program 2009-10, framed in a Cabinet Committee meeting on November 3, gas supply to the industry is to be done for five days in a week.

However, the disruption in gas supplies beyond two days in a week is being resorted to by the Sui Northern Gas Pipelines Limited (SNGPL), which is impacting industry’s export oriented production, informed sources.

Moreover, the committee also decided to supply additional gas to the SNGPL network from various sources, including diversion of 220 mmcfd of gas from the Sui Southern Gas Company (SSGC) sources. But, this availability of gas to the SNGPL from SSGC sources has not been made available to meet SNGPL’s increasing gas scarcity in winter.

The Chairman of All Pakistan Textile Mills Association (APTMA), Punjab will urge the concerned ministries to restore gas supply to the industry as per Cabinet Committee’s decision. The situation can acquire drastic mode if the government failed to act immediately, added the Chairman.

Restrict export of raw materials- NA Committee

2009-12-28T13:02:00.000-08:00

National Assembly Standing Committee on Commerce led by its Chairman Engineer Khurram Dastgir Khan asked the government, to ensure the availability of yarn in the country as well as to restrict its export along with the export of raw cotton, in a meeting at Parliament House. The committee reprimanded the officials of Ministry of Commerce for attending the meeting without doing adequate groundwork with regards to agenda of Trade Organization Ordinance.

As per Mr. Dastgir, rampant export of raw materials and low value-added products reflects government’s irresponsibility towards protecting country’s competitive advantage. Ban on exports of yarn could salvage domestic industries, as lot of workers and manufacturers associated with the industry across the country have been impacted adversely due to ill-advised government policy, he added.

Local industries are already facing challenges due to load-shedding, while the rising prices and unavailability of raw materials are threatening these industries further, he added. Export of raw cotton and cotton yarn witnessed steep surge of 212 percent and 84 percent respectively, during last year. Prices of raw and semi-raw materials in domestic markets are reaching at international level, which are distressing downstream value adding manufacturers.

In addition to this, the Committee recommended the government to balance the trade policy for growers, informed Mr. Dastgir.

Gas load-shedding: Devastating for textile industry

2009-12-28T12:57:00.000-08:00

Lack of regular gas supply to the textile industry forced it to face losses of about Rs. one billion in a month, said the All Pakistan Textile Mills Association (APTMA). Moreover, the scheduled, two-day load-management of gas compelled around 200 textile units in Punjab and NWFP Zones to close down about.

Mr. Guhar Ijaz, Chairman, APTMA Punjab said that the gas supply to the industry was not according to the schedule that already had been prepared by the Textile Ministry with stakeholders, as the two-day load-shedding in a week, which had been decided for textile industry, has now been increased up to four-days, he added.

The industry would suffer more losses along with further closure of textile units, if the gas supply is extending from 8 to 15 days a month, apprehended the Chairman. In order to share gas load-shedding on equitable basis, the association had divided the industrial units of Punjab and NWFP in to four zones.

FBR withdraws Withholding Taxes

2009-12-28T12:53:00.000-08:00

On October 10, Federal Board of Revenue (FBR) has issued an official statement that notifies exemption from payment withholding taxes. This has been the major demand from export oriented industries of the country.

The notification says in exercise of the powers conferred by sub-section (2) of section 53 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Government is pleased to direct that the following further amendment shall be made in the Second Schedule to the said Ordinance.

In the aforesaid Schedule, in Part IV, for the clause (66), the following shall be substituted, namely:-

"(66) The provisions of section 235 shall not be applicable to the taxpayers who fall under the zero rated regime of sales tax and registered with sales tax as exporters or manufacturers of carpets; leather and articles thereof including artificial leather footwear; sports goods; and textile and articles thereof."

Federal Board of Revenue

Texlynx & BASF to jointly develop new performance-based products

2009-12-28T12:48:00.000-08:00

BASF Pakistan Private Limited and Texlynx Home signed a Memorandum of Understanding to collaborate in developing innovative textile articles and in this way buying house in Pakistan that sources for global retailers and brands in USA and Europe.

This is the first time for Texlynx to collaborate with a textile chemicals supplier.

This collaboration aims at presenting innovative textile finishes and concepts, such as functional finishes and textile processes that conserve resources to the global market and showcase high value articles that textile industry of Pakistan has to offer.

The partnership offers the retailers not only support in sourcing, but also technical know-how.

“BASF is committed to the sustainable development of the textile industry.

We want to work together with customers and partners along the textile value chain to deliver high quality textile articles that also meet the latest global ecological standards and requirements,” states Klaus Tiedemann, heading the Global Value Chain Marketing Team at BASF Textile Chemicals.

“Working with Texlynx was a natural choice for us combining Texylnx’s leading position and experience in Pakistan’s sourcing with BASF’s broad product portfolio and application know-how, we can develop innovative articles and eco-efficient processes in the interest of the entire textile industry.”

Texlynx will have access to BASF’s application laboratory in Pakistan to jointly develop new effects.

Imran Lateef, Founder of Texlynx said: “Value addition and process reengineering is a must to maintain and enhance the competitiveness of Pakistan’s textile industry.

Texlynx is delighted to work with BASF, who has a broad chemical and technical expertise. We believe that the increasing challenges of the industry can only be overcome by joint interdisciplinary teams.”

Texlynx Home

The Role of APTMA

2009-12-28T03:32:00.000-08:00

As per charter and by-laws, aims and objectives of the Association are;
1. To encourage friendly feeling and unanimity amongst Textile Mill owners on all subjects connected with their common good.
2. To secure good relations between members of the Association.
3. To promote and protect the trade commerce and manufactures of Pakistan in general and of the cotton trade in particular.
4. To consider questions connected with the trade commerce and manufactures of its members.
5. To collect and circulate statistics & information classify relating to the trade, commerce and manufactures of its members.
6. To take all steps which may be necessary for promoting, supporting or opposing legislative and other measures affecting the trade, commerce or manufactures of its members.
7. To make representation to local, Provincial and Central authorities on any matter connected with the trade, commerce and manufactures of its members.
8. To arbitrate in the settlement of disputes arising out of transactions, piece goods, yarn and other manufactured goods between parties willing or agreeing to submit to arbitration in accordance with the Arbitration Rules of the Association.
9. To advance and promote commercial and technical education connected with the trade and commerce of its members.
10. To undertake special inquiries and initiate or support any action for securing the redress of legitimate grievances connected with the trade or commerce of its members.
11. To take any action which may be conducive to the extension of the trade and commerce of its members or incidental to the attainment of this object.
12. To subscribe, to become a member of and cooperate with any other Association whether incorporated or not whose objects are altogether or in part similar to those of the Association and to procure from or communicate to any such Association such information as may be likely to forward the objects of this Association
13. To establish or aid in the establishment of funds to benefit employees of the Association or the depending of such persons and to subscribe, donate or guarantee money for charitable or benevolent purposes at the discretion of the Association.
14. To regulate conditions of employment in the industry conducted or carried on by its members.
15. And generally to do all that may be necessary in the interest of the realization of the above objects of the Association directly or indirectly.

The Organization
Association's Principal Office is located at Karachi and Regional Offices are at Karachi, Lahore and Peshawar. The Principal Office functions under the administrative control of the Chairman and Central Executive Committee. It deals with the affairs connected with textile trade and industry effecting members relating to Federal Government, whereas matters concerning Provincial Governments are dealt by the Regional Offices under the direction of Regional Chairmen.
The Chairman and Vice-Chairmen from Regional Offices are elected by the members annually and are charged with implementing the policies and program directives decided by the Central Executive Committees. The Chief Operating Officer and Secretaries are responsible for carrying out day-to-day affairs and programmes of the Association. The Central Executive Committee continuously reviews the policies and programs of the Association and establishes priorities accordingly.

Government Liaison

Government policies and plans at the federal level have a significant impact on textile industry affairs. APTMA works in close coordination with other national textile trade association and groups to safe guard the interest of its members in particular and textile industry as a whole. APTMA's role to supplement and complement overall industry activities is always motivated with interests of yarn and cloth segments of the industry.
Specifically, APTMA is involved on a continuing basis in the areas such as import and local procurement of cotton, cotton legislation, income and sales tax law, government statistical programs, and customs regulations concerning textiles exports and imports.
Several yarn industry executives serve on government advisory committees including the State Bank of Pakistan, TDAP, Ministry of Commerce and Federal Board of Revenue, Trade Policy Advisory Committee, and the Industry Sector Advisory Committee etc.
Statistical and Economic Information

The Association collects and compiles statistical and economic data on the textile industry mostly from a number of government sources and publishes Chairman's Annual Review to keep Association members and other sectors related to the industry fully informed about production and marketing trends in Pakistan and world. In addition, special reports are developed periodically on specific subjects at the request of the various committees and government agencies.

The annual general meeting of the Association held each September is an important component of APTMA's total program. Through this vehicle, industry members come to know each other's issues/problems and have time to assess industry trends in an atmosphere apart from day-to-day operations.
Committees

APTMA's activities and specific areas of interest are addressed through its Standing Committees, chaired by an industry executive.

Committees (2008-09)
The committees are as follows:
Standing Committee on Raw Cotton
Standing Committee on Man Made Fibre & Synthetic Textiles
Standing Committee on Banking
Standing Committee on Energy
Standing Committee on International Trade / WTO / ADI
Standing Committee on Research & Development
Standing Committee on Legal Affairs
Standing Committee on Administration & Finance
Standing Committee on Image Building and Media Management
Standing Committee on Islamabad Affairs
Standing Committee on Value Addition
Standing Committee on Export Price Check
Standing Committee on Customs, Sales Tax & Industry
Standing Committee on Taxation

Membership

APTMA membership consists of partnerships and or individual proprietorships, which operate machinery for spinning, dyeing, texturizing, twisting, or otherwise processing of yarn, thread, or cordage, grey, printed and printed cloth and made ups for sale.
The expenses of maintaining APTMA's professional staff and offices are met from the annual subscriptions and services provided to members. APTMA Principal Offices is the central administrative organization, but each member has its own offices and governing board.
For information about Membership, Chief Operating Officer of APTMA, Principal Office, can be contacted.

As per charter and by-laws

2009-12-28T03:31:00.000-08:00

As per charter and by-laws, aims and objectives of the Association are;

1. To encourage friendly feeling and unanimity amongst Textile Mill owners on all subjects connected with their common good.

2. To secure good relations between members of the Association.

3. To promote and protect the trade commerce and manufactures of Pakistan in general and of the cotton trade in particular.

4. To consider questions connected with the trade commerce and manufactures of its members.

5. To collect and circulate statistics & information classify relating to the trade, commerce and manufactures of its members.

6. To take all steps which may be necessary for promoting, supporting or opposing legislative and other measures affecting the trade, commerce or manufactures of its members.

7. To make representation to local, Provincial and Central authorities on any matter connected with the trade, commerce and manufactures of its members.

8. To arbitrate in the settlement of disputes arising out of transactions, piece goods, yarn and other manufactured goods between parties willing or agreeing to submit to arbitration in accordance with the Arbitration Rules of the Association.

9. To advance and promote commercial and technical education connected with the trade and commerce of its members.

10. To undertake special inquiries and initiate or support any action for securing the redress of legitimate grievances connected with the trade or commerce of its members.

11. To take any action which may be conducive to the extension of the trade and commerce of its members or incidental to the attainment of this object.

12. To subscribe, to become a member of and cooperate with any other Association whether incorporated or not whose objects are altogether or in part similar to those of the Association and to procure from or communicate to any such Association such information as may be likely to forward the objects of this Association

13. To establish or aid in the establishment of funds to benefit employees of the Association or the depending of such persons and to subscribe, donate or guarantee money for charitable or benevolent purposes at the discretion of the Association.

14. To regulate conditions of employment in the industry conducted or carried on by its members.

15. And generally to do all that may be necessary in the interest of the realization of the above objects of the Association directly or indirectly.

The Organization

Association's Principal Office is located at Karachi and Regional Offices are at Karachi, Lahore and Peshawar. The Principal Office functions under the administrative control of the Chairman and Central Executive Committee. It deals with the affairs connected with textile trade and industry effecting members relating to Federal Government, whereas matters concerning Provincial Governments are dealt by the Regional Offices under the direction of Regional Chairmen.
The Chairman and Vice-Chairmen from Regional Offices are elected by the members annually and are charged with implementing the policies and program directives decided by the Central Executive Committees. The Chief Operating Officer and Secretaries are responsible for carrying out day-to-day affairs and programmes of the Association. The Central Executive Committee continuously reviews the policies and programs of the Association and establishes priorities accordingly.

Government Liaison

Government policies and plans at the federal level have a significant impact on textile industry affairs. APTMA works in close coordination with other national textile trade association and groups to safe guard the interest of its members in particular and textile industry as a whole. APTMA's role to supplement and complement overall industry activities is always motivated with interests of yarn and cloth segments of the industry.
Specifically, APTMA is involved on a continuing basis in the areas such as import and local procurement of cotton, cotton legislation, income and sales tax law, government statistical programs, and customs regulations concerning textiles exports and imports.
Several yarn industry executives serve on government advisory committees including the State Bank of Pakistan, TDAP, Ministry of Commerce and Federal Board of Revenue, Trade Policy Advisory Committee, and the Industry Sector Advisory Committee etc.

Statistical and Economic Information

The Association collects and compiles statistical and economic data on the textile industry mostly from a number of government sources and publishes Chairman's Annual Review to keep Association members and other sectors related to the industry fully informed about production and marketing trends in Pakistan and world. In addition, special reports are developed periodically on specific subjects at the request of the various committees and government agencies.

The annual general meeting of the Association held each September is an important component of APTMA's total program. Through this vehicle, industry members come to know each other's issues/problems and have time to assess industry trends in an atmosphere apart from day-to-day operations.
Committees

APTMA's activities and specific areas of interest are addressed through its Standing Committees, chaired by an industry executive.

Committees (2008-09)
The committees are as follows:
Standing Committee on Raw Cotton
Standing Committee on Man Made Fibre & Synthetic Textiles
Standing Committee on Banking
Standing Committee on Energy
Standing Committee on International Trade / WTO / ADI
Standing Committee on Research & Development
Standing Committee on Legal Affairs
Standing Committee on Administration & Finance
Standing Committee on Image Building and Media Management
Standing Committee on Islamabad Affairs
Standing Committee on Value Addition
Standing Committee on Export Price Check
Standing Committee on Customs, Sales Tax & Industry
Standing Committee on Taxation

Membership

APTMA membership consists of partnerships and or individual proprietorships, which operate machinery for spinning, dyeing, texturizing, twisting, or otherwise processing of yarn, thread, or cordage, grey, printed and printed cloth and made ups for sale.
The expenses of maintaining APTMA's professional staff and offices are met from the annual subscriptions and services provided to members. APTMA Principal Offices is the central administrative organization, but each member has its own offices and governing board.
For information about Membership, Chief Operating Officer of APTMA, Principal Office, can be contacted.

The International Cotton Market: Major Challenges

2009-12-28T03:29:00.000-08:00

Overview of the World Cotton Industry

Cotton is one of the most important and widely produced agricultural and industrial crops in the world. Cotton is grown in more than 80 countries on about 2% of the worlds arable land, making it one of the most significant in terms of land use after food grains and soybeans. Cotton is also a heavily traded agricultural commodity, with over 100 countries involved in exports or imports of cotton.

More than 100 million family units are engaged directly in cotton production. When family labor, hired-on farm labor and workers in ancillary services such as transportation, ginning, baling and storage are considered, total involvement in the cotton sector reaches an estimated 300 million people. It also provides employment to additional millions in allied industries such as agricultural inputs, machinery and equipment, cottonseed crushing and textile manufacturing. Cotton cultivation contributes to food security and improved life expectancy in rural areas of developing countries in Africa, Asia and Latin America. Cotton played an important role in industrial development starting in the 17^th century and continues to play an important role today as a major source of revenue. The value of world cotton production is estimated at more than $30 billion.

Until the current economic recession, the world cotton industry had been experiencing robust demand growth and rising yields, making it one of the best-performing commodity industries in the world during the first part of this decade. The world cotton industry has experienced dramatic changes over the last six decades as production nearly quadrupled, rising from 7 million tons in 1950/51 to 27 million tons four years ago, before falling to 23 million in 2008/09. The average annual rate of growth in world production over the last six decades has been about 2.5% per year.

New technologies, more extensive use of existing technologies, and new areas dedicated to cotton are resulting in dramatic gains in production. Since the mid-1990s, the world yield has risen from less than 600 kilograms per hectare to nearly 800. Conventional cotton variety development, biotechnology, improved management of irrigation, targeted applications of pesticides, improved use of fertilizers, and improvements in crop management are leading to increased yields and lower production costs.

A survey by the Secretariat of costs of production using data from 2006/07, indicates that the average total cost of production, excluding the cost of land rent and the value of cottonseed sold after harvest, averaged about $0.50 per pound, and if economic and fixed costs are also excluded, the resulting marginal cash costs of production averaged between $0.40 and $0.45 per pound. These data indicate that the average land owner, producing cotton at average cost and gaining average yields, assuming no changes in prices of competing crops, will tend to maintain or expand production when farm prices exceed 40 to 45 U.S. cents per pound of lint, translating into CIF prices reflected in the Cotlook A Index of between 50 cents and 60 cents per pound.

World demand for cotton has increased at an impressive pace since the 1950s, rising from 7 million tons in 1950 to 26 million tons in 2007, for an average annual rate of growth of more than 2%. The first half of this decade saw extraordinary rates of growth in cotton use. During the period from 1970/71 through 1998/99, world cotton use rose at an annual rate of 1.5%, but between 1998/99 and 2006/07, cotton use rose by 4.5% per year.

Denim-The Indian Connection

2009-12-28T03:05:00.000-08:00

Who said that all the credit of denim apparels is only for America?

History of jeans dates back even before the period of Levi Strauss, which has a renowned association with it. Denim is a fabric, which is used for making jeans. Though denims are more popularly associated with America, India has the credit of its early history. Initially jeans were ordered for the Italian sailors from the French city of Nimes. The fabric was dyed from a blue dye manufactured out of the indigo plant that grew in India.

Jeans has one more interesting Indian connection. The denim garments of Italian sailors, during the span of time, transformed into boilersuits for protecting their clothes. This overall apparel was made from coarse and undyed calico fabric. This fabric is mainly associated with Calicut in India, and hence the name calico. These overalls were mainly manufactured in the Dongri area in Mumbai, and hence acquired the name Dungaree.

Indian Market for Denims:

Indian denim market is among the fastest growing market with a projected growth rate of 8-12%. Fashion is driving the sales of this apparel like never before. Fashion mania that is fascinating the jeans market is ubiquitous, cutting across the price segments and brands. Increasing number of middle-income families in India has given a chance for denim apparels to capture a good market. Satellite Televisions have also played their part in creating a fascination for these apparels associated with the Western culture.

Brands like Hugo Boss, Tommy Hilfiger, and Rathore jeans make the premium segment with a price tag of more than Rs.2, 000. Pepe, Wrangler, and Lee make the premium segment with products ranging from Rs.1, 000-2,000. Numerous brands exist in the Indian market with a price range of Rs.500 -1,000. Other in store jeans is also available at prices ranging from Rs.400.

Fashion gurus believe that fashion wave for denim apparels is driven by innovations in washes, and fabrics. Manufacturers are coming up with novel ideas to capture the minds of consumers especially the younger segment. Crosshatched, broken twill, stretch, and multi-count are a few popular patterns. Jeans are available at all price ranges to suit the budget of every single customer. Even for the people who prefer tailored garments over ready made ones, ready to stitch jeans are available with a pant fabric, leather label, pouch of rivets, and an instruction booklet regarding the stitching process. Manufacturers do not want to lose a single opportunity of marketing their products.

Concept stores are planned by brands conveying an uppity attitude, celebrating snobbery right from its signage to store interiors, furniture, plasma televisions, and other features to captivate the shoppers. These stores provide the consumers with a complete brand experience and communicate the imagery lifestyle and value of the brand. Levi Strauss has chalked out plans for adding 800 stores all across India by 2011. Wrangler brand has diverted from its menswear segment to introduce the new Wrangler girl. Arvind is the third largest denim manufacturer in the world, exporting more than 150 varieties to 66 countries all across the globe. Big brands such as Lee, JC Penny, Wrangler, Marks & Spencer, Gap, and Lee Cooper use their denim fabrics.

Today jeans have become an exemplary outfit in every wardrobe. Every one will have at least one pair of jeans in their closet. Popularity of denim has a ripple effect with other items complementing their usage. Denim industry in India is moving towards a positive phase, with the popularity of variety of denim apparels growing at a phenomenal rate.

Shape Memory Polymer

2009-12-28T02:51:00.000-08:00

Abstract

Shape-memory polymers are a new product created by utilizing the shape memorizing mechanism of elastomers of the polyurethane family. These materials exhibit novel properties such as sensing (thermal, stress, optical, chemical), actuation, high damping, adaptive responses, super-elasticity capability, and air permeability.

SMP undergoing deformation at higher temperatures,"retain" the deformed shape when cooled and return to their original configuration when heated above "glass transition temperature". SMP's should avoid "permanent deformation".

Such type of materials capable of undergoing thermal shape transition are a division of smart or intelligent materials. Studies are conducted to synthesize polymeric materials with one and two switching temperatures as SMP.

Introduction

SMP can be stimulated by temperature, pH (the level of acidity or alkalinity), chemical and light. They are able to sense and respond to external stimuli in predetermined shape. Most of the thermally induced shape memory polymers (SMP's) have a one-way shape memory effect: they remember one permanent shape formed at the higher temperature, while many temporary shapes are possible at lower temperatures for which the systems do not have any memory.

A two-way thermally induced SMP will remember two permanent shapes, one formed at higher temperature and one formed at lower temperature. By thermally cycling the system, these types of polymeric materials will take two different shapes depending on the temperature. These shape memory systems are engineered at the molecular level for the required behavior

Shape Memory Polymer By : R. Karthika, N. Maheshwari and N. Hariharasudan

2009-12-28T02:48:00.000-08:00

Man-made Fabric Manufacturers Should Be Provided Fibre at Chinese Rates

2009-12-28T02:28:00.000-08:00

'Magical Wonder of Wooden Blocks': Fabric Block Printing

Bed spreads, drapes, curtains, cushion covers, shower curtains, table cloths, pillows, and valances, featured with floral sprays, and delicate patterns in hues of pleasant pastels, on fine cotton fabrics the exclusive craft of block printing. One gets into the sensational world of traditional flavor with a blend of modern aesthetic feeling with hand block printed home furnishings.

This is a 2000-year-old craft. Originated and developed in China, the earliest example of block printing is the copy of the Diamond Sutra of 868 AD. Block printing is a technique by which carved wooden blocks are coated with dye and are repeatedly pressed on a length of cloth to create beautiful patterns. Traditional block prints were preferred greatly by the Mughal Emperors. This is unique in its own way that every piece of fabric is exclusive from other ones, which is not possible for machine printing.

Block printing skills are passed through many generations, and are the livelihood of many families. The design is traced on the woods surface. This process enables much artistic freedom, and inclusion of pictures. The wood is then chiseled to the depth of an inch. Small holes are drilled in the areas meant for flat color. They are stuffed with cotton at the tie of printing to ensure even application of color.

Articles about textile industry

2009-12-28T02:14:00.000-08:00

Cut Resistance Behaviour of Fibres
By : Dr. C. Rameshkumar & Dr. N. Anbumani

cut resistant fabrics are made with polymeric and non polymeric high performance fibres such as high tenacity polyester, nylon, loyotropic polymer fibres, gel spun fibres and thermotropic liquid crystal polymer fibres. New products are also made with core and wrapped yarns by suitable combination of specialty fibres and yarns in different fabric weaves.

There is a continuing need for fabrics that resist cuts and abrasions, which occur when a sharp edge of a knife, a tool having a sharp edge or items having sharp edges are encountered. Cut resistant fabrics are particularly useful for making protective clothing such as gloves used in meat cutting industry and for handling metal/glass articles, in manufacture of sports wear, in automobile upholstery and for packaging materials.

Cut resistant fabrics are made with polymeric and non polymeric high performance fibres such as high tenacity polyester, nylon, loyotropic polymer fibres, gel spun fibres and thermotropic liquid crystal polymer fibres. New products are also made with core and wrapped yarns by suitable combination of specialty fibres and yarns in different fabric weaves.

The level of cut resistance provided by the reinforcing yarns depends on the way in which they are incorporated in the textile substrate. With regard to many different fabric manufacturing techniques available, a large number of alternatives for developing cut resistant textiles are feasible.

Cut resistance is the property demonstrated by a material or combination of materials, when a sharp-edged device initiates cut through. In general, there are two types of cut hazards: (1) Sharp edge cuts, such as knife blades and clean edge sheet glass and (2) Abrasive cut hazards; these include rough edge sheet metal, stamped or punched sheet metal, and rough edged sheet glass.

Pakistan-Textile Industry; Roundup: Pakistan's Government Solves Textile Crisis

2009-12-28T01:54:00.000-08:00

Textile industry, the backbone of Pakistan's economy, accounts for 8 percent of the country's gross national product, 42 percent of total employment in large scale manufacturing and more than 60 percent of the country's total export receipts.
In the last three years, the textile industry confronted the most serious recession in decades.
The sharp fall in cotton output from 1991 to 1994, caused by cotton virus and floods, led to dramatic increases in cotton prices in the country.
The textile industry was hit hard by increasing power rates and high interest rates on commercial loans following ...

APTMA

2009-12-28T00:22:00.000-08:00

All Pakistan Textile Mills Association (APTMA) is the premier national trade association of the textile spinning, weaving, and composite mills representing the organized sector in Pakistan. APTMA emerges as the largest association of the country as it represents 396 textile mills out of which 315 are spinning, 44 weaving and 37 composite units. These spinning mills have production facilities of texturing, mercerizing and dyeing of yarns; weaving mills have sizeable number of air-jet looms, and the composite mills have manufacturing facilities from spinning to finished textile products under one roof. The total installed capacity of APTMA member mills accounts for 9,661,366 spindles, 61,608 rotors, 10,452 Shuttleless/Airjet Looms and 1897 conventional looms. The Association's members produce spun and open-end

Govt to withdraw zero-rating status to textiles, carpets & leather

2009-12-27T23:37:00.000-08:00

Mr. Fawad Ijaz Khan Chairman Pakistan Leather Garment Manufacturers & Exporters Association (PLGMEA) has stated that the Federal Board of Revenue (FBR) is considering to withdraw Zero-Rating of Sales Tax granted under the Sales Tax regime to five Exporting Industries.

FBR is currently working on new Value-Added Tax law for full implementation of the VAT System as per agreement with the IMF. This new VAT system will replace the existing General Sales Tax (GST) regime.
Mr. Fawad further stated that the Government of Pakistan had zero-rated the Sales Tax on most of the Inputs used in the production of five Export Industries in the Federal Budget of 2005-06. The Zero-Rated industries were Textile, Leather, Sports, Surgical and Carpets.
As per our Government’s agreement with the IMF this new VAT System will have very minimal exemptions and all Trading and Services will be brought under the VAT regime. Besides Zero-Rating of five Exporting Industries the Sales Tax exemptions are covered under the Sixth Schedule of the Sales Tax Act 1990 and items mostly related to Food, Machinery & local supplies are exempted from Sales Tax.
Mr. Fawad stated that prior to 2005-06 there were many cases of over-invoicing of exports with the objective of claiming bogus Sales Tax Refunds. The unscrupulous exporters used to get bogus and flying Sales Tax Invoices and obtain undue Sales Tax Refunds.
Because of this practice the genuine exporters were not able to compete with Exporters who were taking advantage of loopholes in the old system by obtaining bogus and flying Sales Tax Invoices.
Even today several Sales Tax refunds pertaining to period prior to 2005-06 are still pending and FBR is not paying these claims because mostly suppliers of exporters are black-listed by the FBR.
Mr. Fawad stated that FBR was supposed to conduct a Seminar in December 2008 as per agreement with IMF to discuss the VAT regime with stakeholders. But no seminar has taken place so far and neither the stakeholders are consulted.
Mr. Fawad requested the FBR to maintain the Zero-Rated status of the five export industries already exempted from the scope of Sales Tax. If it is imperative to withdraw Zero-Rating then these five industries should be consulted and taken into confidence while formulating any new VAT Law.
Pakistan Leather Garment Manufacturers & Exporters Association

Textile Ministry finalizes draft of textile revival package

2009-12-27T23:27:00.000-08:00

The Federal Textile Minister, Mr Farooq, yesterday announced that, the government has finalized the draft of the National Textile Revival Plan, which has been sent to the relevant stake holders for their comments.

Mr Farooq announced this, on the sidelines of a seminar on “Pakistan Hosiery Manufacturers ”, hosted by the ,Association and added by saying that attending this seminar was part of government policy to seek recommendations from industry leaders.
Earlier while addressing the seminar, Mr Farooq said that, the State Bank of Pakistan had started accepting R&D claims, the payment for which may begin, early next week. He also revealed that the government had allowed import of five year old machinery, as suggested by the industry trade bodies.
Three more of these type of seminars will be held in Faisalabad and Sialkot and the final one at the President’s residence. The minister said that the government was keen to solve the problems of the sector and this seminar had been organised on the recommendations of the President, himself he disclosed.

APTMA opposes imposition of anti-dumping duty on PSF

2009-12-27T23:22:00.000-08:00

Recently, the government had slapped an anti-dumping duty on imports of Polyester Staple Fibre (PSF) from China. The textile mills of the country are up in arms against the decision taken by the National Tariff Commission
The textile mills, under the banner of the All Pakistan Textile Mills Association (APTMA) have said that this decision will lead to a cartel among PSF producers in the country and will render the textile products uncompetitive in global markets.
They allege that the domestic PSF manufacturers have already hiked the prices by 10 percent and are delaying deliveries to the textile mills. They add by saying that the local PSF producers already are protected by a 4.5 percent import duty and 8.5 percent expenses incurred in importing the fibre.

Duty free access from ROZ’s a non-starter - Experts

2009-12-27T23:14:00.000-08:00

Mr Barrack Obama, President of the United States, had recently declared that the US would provide tariff free access to textile and apparel products manufactured on the Pakistan-Afghanistan border regions to be called Reconstruction Opportunity Zones (ROZ’s
He had also added by saying that the cwould be provided on select textile and apparel products irrespective of the origin of the raw materials used in these products. This he said would go a long way in generating employment in the region.

But the textile and clothing industry in Pakistan is far from excited on hearing the proposal. Experts aver that, there is not a single unit remotely connected to the sector in the border areas, so this policy would be a non-starter in the short term.

One more drawback that the policy carries, say experts, is that, it excludes the largest variety of products that is exported to the US; Cotton knit shirts and cotton trousers which account for 90 percent of all exports from the sector to the US.

The bill also carries with it stringent labour law standards, the adherence to which would be one of the key parameters to getting the duty free access for these products and the Pakistan government would need to file regular reports on the observance of these norms.

Only spinning sub-sector eligible for loan swap scheme of SBP

2009-12-27T23:08:00.000-08:00

The State Bank of Pakistan has provided a reprieve to the export oriented industries; by allowing them a one time opportunity to swap and refinance their outstanding loans availed to import or purchase plant, machinery and equipment with SBP’s Long Term Facility Scheme (LTFS).

As per the circular issued by the Apex bank, only those long term loans will be eligible for the swap, which had been disbursed by the banks between January 2005 and March 2009, but the scheme excludes the highest export revenue generator; textiles and garments.
This one time opportunity scheme will stay open from April 21 to June 30, 2009. Only 50 percent of the loan will be eligible for refinancing while the rest will stay concurrent with the lending banks and also excludes loans which have been declared non-performing under SBP guidelines.
Meanwhile, the SBP released a second circular, which included various sub-sectors from the spinning industries, making them eligible for the LTFS loans. The sub-sectors include doubling, twisting, combing, yarn dyeing, etc.t

Textile industry will enjoy smooth power supply

2009-12-27T22:59:00.000-08:00

The government wants to ensure a smooth power supply to the textile industry units as it wants to protect the industry, which is the backbone of country’s economy, said Mr Raja Pervez Ashraf, Minister of Water and Power.

Mr. Raja, along with the minister of textile Rana Muhammad Farooq, talked to the media after a meeting with a delegation of textile industry, Power Looms Association and representatives of Faisalabad Chamber of Commerce and industry.

The minister informed that, a committee, headed by the Minister of Textile with representation from all sectors has been constituted to outline a strategy to resolve the problems of textile industry, mainly to ensure proper electricity supply to the industry.
Furthermore, he added that committee meeting will be held in Lahore on Saturday with Managing Director and Director General of Pakistan Electric Power Company (PEPCO). The committee will finalize the recommendations which will be sent to the Ministry of Water and Power.
Power tariff determined by National Electric Power Regulatory Authority (NEPRA) will also be discussed in this meeting, which will also be discussed at other relevant forums also, said Minister of Water and Power.

Govt releases first tranche under textile policy

2009-12-27T22:52:00.000-08:00

The Federal Textile Minister, Rana Muhammad Farooq Saeed Khan, who chaired the 1st meeting of Textile Policy Implementation Liaison Committee, informed that the government has allocated Rs 10 billion for various initiatives under the textile policy for the current fiscal year.
He added by saying that out of the Rs 10 billion, Rs 5 billion had already been released to the State Bank of Pakistan and that he would ensure that the textile policy would be implemented in its true spirit for the development of textile sector in the country.
Dr. Waqar Masood apprised the participants, who represented all the sub-sectors of the textile industry about the progress on implementation of the policy in detail and that notifications regarding important initiatives of the policy have already been issued.

Act to help stakeholders avail benefit of textile policy

2009-12-27T22:50:00.000-08:00

A Textile Act has been proposed to be framed, under which only those companies registered with the Federal Ministry of Textiles, will be eligible to receive incentives under the textile policy, which was announced earlier in the year.

The details of the proposed Textile Act will be shared with the textile sector in the next meeting of the committee, as per a decision taken by the Textile Policy Implementation Liaison Committee at its second sitting held yesterday.

Members of the committee discussed various issues with regards to the implementation of the Textile Policy. Ideas and views were shared and different suggestions and recommendations were given by the committee members during the meeting.

The Committee was also informed about the registration process related to yarn export contracts and it was decided to convene a separate meeting, to discuss the issues relating to yarn exports and difficulties faced by the stakeholders.

Duty structure of polyester chain under review

2009-12-27T22:45:00.000-08:00

In line with the directives announced in the Textile Policy 2009-2014, the National Tariff Commission (NTC) has initiated an investigation to review the duty structure of the Polyester value chain in the country.

The commission will follow a due process where, it shall carry out an in-depth examination of the case of protection to indigenous industry and also conduct comprehensive analysis of the relevant data.

The textile minister while announcing the textile policy had said that, to promote utilization of man-made fibre and diversify the export mix, monetization of customs duty of PTA is being continued to offset additional cost for the users for the current year.

Federal Cabinet approves Textile Policy

2009-12-27T22:39:00.000-08:00

Federal Cabinet Wednesday approved textile policy in a meeting at Prime Minister Secretariat here with Prime Minister Yousuf Raza Gilani in chair. The cabinet in the five-year textile policy has set the textile exports target at 25 billion dollars. The cabinet also decided to take steps to boost the production in textile sector. Prime Minister Gilani also formed a ministerial committee to monitor the enforcement of the textile policy. Prime Minister Syed Yousuf Raza Gilani Wednesday said the Textile Policy aims at incorporating the strategies that are essential to address the challenges confronting this sector on a sustainable basis besides meeting the expectations of the industry. Addressing the Special Cabinet meeting convened to consider the Textile Policy 2009-14 at the PM Secretariat, the Prime Minister said for the first time in the history of the country, the government was adopting a five-year Textile Policy, which would give the vision that was needed for the textile sector.

PAKISTAN: Textile makers demand cotton yarn export ban

2009-12-22T10:57:00.000-08:00

This article is locked. You need to be a Full Member of just-style to view this article. Existing users, please login at the top of the page.

Summary: Workers at a number of textile plants in Pakistan have taken strike action in protest against cotton yarn exports from the country.

Word count: 194

Date: 9 December 2009

Source: Ahmed Abdullah

About the Textile Industry of Pakistan

2009-12-22T08:59:00.000-08:00

Pakistan is the fourth largest cotton producer in the world. Because of its plentiful, indigenous cotton supply, the textile industry is central to the Pakistani economy and is both a source of employment and a source of exports. Pakistan's industrialization began in the 1950s with the textile industry at its center. Today, textiles account for 38 percent of total manufacturing and 8 percent of GDP. The textile industry employs almost 40 percent of the industrial workforce. Despite the critical role textiles play in the economy, most textile manufacturers are cottage or small-scale industries. Pakistan relies on outside engineering and manufacturing expertise and must purchase most of its equipment abroad. Recognizing the importance of the textile industry to the nation's economy, the Pakistani government began taking steps in 2005 to rebuild the competitiveness of this critical industry.

The Pakistani textile industry depends on domestic agriculture to supply its raw materials, thus the success of the cotton crop is critical to the health of the textile industry. Cotton accounts for 14 percent of land under cultivation in Pakistan. Pakistan has suffered from a number of cotton failures over the years, beginning in the early 1990s. These crop failures drove up the price of cotton, and this coupled with a market recession and tightened finance regulations led to a weakened textile industry.

Textile Industry in Pakistan - An Introduction

2009-12-20T10:28:00.000-08:00

The share of textile industry in the economy along with its contribution to exports, employment, foreign exchange earnings, investment and value added makes it the single largest manufacturing sector for Pakistan. It contributes around 8.5 percent to GDP, employs 38 percent of the total manufacturing labor force, and contributes between 60-70 percent to total merchandise exports. Indeed, with exports reaching about $8.6 billion in 2004-05, Pakistan is one of the largest textile exporters in the world.