| 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. | |
Monday, December 28, 2009
Ginners receive financing for machinery up-gradation
Customs duty on imported textile machinery withdrawn
| 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
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.
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
| 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%
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.
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
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.
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
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.
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.
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