The Senate Standing Committee on Textile Industry has asked the government to curtail the cost of production for textile products aimed at providing the industry with a level playing field to compete with other countries of the region. The committee sought immediate actions to address issues being faced by the textile industry due to various policies and regulations. The committee met with its chairman, Senator Mohsin Aziz, and recommended that the government must immediately lift ban on new gas and electricity connections for the textile industry besides provision of uninterrupted supply of those resources.It further recommended zero rating on exports, clearance of pending refunds, strengthen domestic commerce, remove duties on man-made fiber (MMF) imports and introduce investment support schemes to the textile sector. It is worth mentioning that share of Pakistani textiles in the global market has dropped by 0.4 percent in the past five years and the general trends of the textile industry show that it is steadily declining. Although, according to APTMA, textile exports have been dropping by 2.65 percent per month, textiles still comprise over 60 percent of Pakistan’s total exports. The collapse of this vital industry will have serious implications for our economy. Despite having been granted GSP Plus status and better trade opportunities in the European Union and other parts of the world, Pakistan’s textile exports declined by 2.85 percent from May 2014 to May 2015.APTMA blames this decrease in productivity on the taxes and tariffs imposed on textile producers and the high costs (and lack of steady supply) of gas and electricity. The controversial Gas Infrastructure Development Cess, in particular, is seen by textile manufacturers as an unfair burden on their industry. The power shortages and inconsistent supply of power and gas means that the textile mills cannot function at full capacity, which drives up production costs, decreases productivity and makes them even less competitive. China is capitalising on mass production to become one of the largest textile exporters in the world, having increased its share in the global market from 27 percent in 2006 to 37 percent in 2013. Bangladesh and India are also becoming increasing competitive textile manufacturers and exporters in the region. To keep up with the modern world of the textile trade, Pakistan’s textile mills will have to be updated to more efficient modes of production, with newer machinery and an emphasis on producing finished products, rather than yarn and other rudimentary textiles.
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