PHMA urges incentives for value-added textile sector

FAISALABAD: Instead of witnessing the usual pre-Christmas surge in demand, it is alarming that the apparel and garments sector is currently operating at only 50% of its production capacity. If the value-added textile sector is not provided with incentives to remain competitive with regional and global rivals, Pakistan’s exports will face a serious setback in the coming days.

This was stated by Ahmad Afzal Awan, the newly elected Senior Vice Chairman of the Pakistan Hosiery Manufacturers & Exporters Association (PHMA), while addressing a press conference today.

The event was also attended by former and current office bearers, including Mian Kashif Zia, Mian Farrukh Iqbal, Hazar Khan, Javed Aslam, and Hafiz Rashid Mehmood.

Ahmad Afzal Awan said that the global apparel and garments sector is worth USD 1.7 trillion, and if Pakistan can capture even 10% to 20% of this share, it would not only meet all of the country’s foreign exchange requirements but also create millions of new employment opportunities.

Highlighting the challenges faced by the sector, he said that electricity and gas tariffs in Pakistan are much higher compared to competing countries. The withdrawal of the zero-rating facility has created severe cash flow issues for both small and large manufacturing units. He further mentioned that the DLTL (Duty Drawback of Local Taxes and Levies) scheme, which was introduced to offset high production costs, has been suspended, further aggravating the situation.

He emphasized the need for provision of low-cost financing facilities to help industries overcome financial constraints and urged the government to take immediate steps for the extension of Pakistan’s GSP+ status.

Referring to the high cost of fabric production, he said that cotton accounts for nearly 60% of fabric cost, but due to adverse government policies, its production has declined drastically. He called for urgent incentives for cotton growers to revive domestic production.

He also demanded the establishment of vocational training institutes to supply skilled manpower for the garments industry and cautioned that the problems of this sector should not be taken lightly, as it provides livelihood to millions of workers and their families.

Awan further called for the formulation of a long-term and comprehensive industrial policy for the sustainable growth of the garments sector, developed in consultation with all stakeholders.

Former Chairman Mian Kashif Zia welcomed the young leadership within PHMA and reaffirmed that the rotation policy decided by the group leaders would continue.

Former Chairman Mian Farrukh Iqbal urged the government to restore the Export Facilitation Scheme (EFS) in its original form and assured full support to the newly elected senior vice Chairman.