December 3, 2010 (2 days ago)
By Mubarak Zeb Khan
ISLAMABAD, Dec 2: As cotton importers have lost hope in recovering their withheld orders, the government has adopted diplomatic channels to exhort Indian exporters for releasing maximum quantity of the committed cotton orders to Pakistan, disclosed Federal Minister for Textile Ministry, Rana M. Farooq Saeed Khan, here on Thursday.
“Efforts are under way through diplomatic channels to urge Indian exporters for honouring their commitment to release the promised cotton orders,” the minister said while chairing the four meeting of Textile Policy Implementation Liaison Committee to review various issues and problems confronting the industry. It was attended by representatives from various textile associations.
A senior official in the textile ministry told Dawn that the government was trying to ensure maximum release of the cotton from India. Pakistani importers have signed contracts for import of 1.1 million tons of cotton from India.
Indian exporters, according to the official, were now reluctant to honour their commitment on agreed price, which was lower at the time of signing the contracts. As prices have surged in the international market, Indian exporters are now demanding similar increase in their prices of cotton.
According to the official, Indian exporters have shown willingness partially for release of only 300,000 tons of cotton.
“We are trying to ensure maximum release of withheld cotton. The floods have affected 2.6 million tons cotton. Our textile industry would need more raw cotton because of local shortage,” the official said.
An official statement issued by textile ministry said that representatives of various textile associations requested the federal minister that his ministry should take steps to urge Indian exporters to release cotton orders as industry was facing shortage of the item.
They also requested the minister that zero-rated regime for textile sector should not be withdrawn.
They said they were not against the reformed general sales tax (RGST) bill but have differences with the mechanism of tax collection adopted under the new tax law.
They said they were not against the reformed general sales tax (RGST) bill but have differences with the mechanism of tax collection adopted under the new tax law.
“Textile is the most important manufacturing sector of Pakistan as it has an average share of about 60 per cent in national exports.
PPP-led coalition government knows its importance and steps would be taken at all levels to make this sector grow,” federal textile minister informed the delegation.
Meanwhile, the five zero rated sectors — textile, sports, carpet, surgical and leather–demanded continuation of the zero rated system of sales tax under the RGST law.
The minister claimed that due to his government policies, textile industry was growing at the rate of 20 per cent.
The meeting reviewed the current situation emerging in textile sector along with the various problems confronting it.
Secretary of Textile Industry Waqar Masood briefed the participants about steps taken by the textile ministry for implementation of the Textile Policy 2009-14 in the start.
No comments:
Post a Comment