PHMA for allowing import of textile accessories from India.

Pakistan Hosiery Manufacturers Association (PHMA) has proposed the government to allow import of textile accessories from India to fulfil the foreign buyers' products demands. The association wants the SRO 1065(I)/2005 dated October 20, 2005, which is primarily for import of textile accessories, should also enshrine such imports from India.

It also identifies problems in the trade policy proposals for 2010-11, as their concerns are the dwindling demands from global buyers who insist on using textile related accessories of countries they have listed for complying with their orders.

India being a neighbouring country is widely seen as a cost-effective supplier for Pakistani textile garments manufacturers-cum-exporters to satisfy their global customers.

PHMA also demands of the government to make all products imported for export oriented industrial consumption zero-rated to scale down the soaring cost of production and achieve high growth. It also proposes lowering of sale tax rate on products, including chemicals and accessories etc. The government should also extend some incentives to exporters earning huge foreign exchange without availing export refinance facility, the association says, adding the number of such exporters is high.

It has underscored the point that the country's seaports are most expensive in the region, while each port's charges are different from the other. Charges should be uniform at all seaports, it demands.

Port charges, PHMA maintains, should 'substantially' be reduced to scale down the cost of raw materials.

PHMA also wants creation of travel support fund to compensate for the increased travelling expenses for global marketing. The frequent foreign visits before finalising orders with buyers, which increases three percent cost of doing business, making it difficult for manufacturers-cum-exporters to meet competition, PHMA contends in the proposal draft.

Regarding the export oriented unit schemes, the association says such a status should be given to those units manufacturing finished goods, and raw materials producers should be excluded.

It regretted the value-added textile sector despite struggling hard for attaining the export oriented unit scheme could not achieve its purpose, rather the government allotted the status to other sectors. PHMA demands a separate power and gas tariff system for textile sector, which should be exercised with exclusion of profit, taxes and cross subsidy. Only cost of distribution, transportation, and management should be recovered through separate tariff system.

Similarly, the association has termed the value addition in cotton as "poor", sinceunrestricted export of cotton has had negative impact on local value-added textile manufacturing sector.

It proposes check on global cotton trend and monitoring of its export, saying the raw material export should be allowed in line with the global supply and demand, only under the auspices of ministry of textile industry.

It stresses on formation of a mechanism to bar cotton export if there is a shortage on the local market or global decline in production. Consistent export price is proposed in line with import price and the association urged the government to fix the cotton price according to global trend. The government should discourage export of raw materials, extend incentives on export of value-added textile products and restrict export of yarn by commercial exporters, the proposal added. Besides allowing export by manufacturers subject to production of fine count yarn as percentage of production, ie 50 percent export should be above 32-count yarn as a compulsory condition.

PHMA wants change in appointments of commercial counsellors, saying the officers selected for the duty abroad primarily are inexperience and fail to carry out their jobs to promote Pakistan's businesses.

It regrets the expenses, which the government annually pay for them is sheer wastage of public money. In this connection, the association proposes, "either a successful business leader of Pakistani community living in the country of posting or some well experienced businessman of that country may be posted as commercial counsellor of Pakistan on commission basis". It maintains, the counsellors should be appointed with set yearly targets.

Source: Business Recorder