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Cabinet may announce package for textile industry on July 16 - LRE - 07-12-2008 06:42 PM
Cabinet may announce package for textile industry on July 16
SEHRISH WASIF
ISLAMABAD (July 12 2008): Federal cabinet meeting, likely to be held in Lahore on July 16, will announce relief package for the textile industry, well-placed sources in the ministry of textile told Business Recorder, on Friday. Sources said the Economic Co-ordination Committee (ECC) of the Cabinet will hold a meeting on July 15 to discuss the issue.
Sources said that due to the financial crunch the government is finding it difficult to give relief to the textile industry, which amounts to Rs 25-30 billion. "The government would first consider whether it is in a position to spare this much amount of money or not as it is already facing a tight financial position," sources added.
On the other hand talking to Business Recorder, Jawed Bilwani, Chairman, Pakistan Hosiery Manufacturers Association (PHMA) said that the Cabinet will not discuss textile relief package instead it may take up the issue of R&D facility.
Bilwani said the Cabinet is likely to discuss ways to replace R&D facility with duty drawback. "We had demanded of the government to give 9 percent R&D facility but now we want the government to give at least give 11 percent duty drawback to the industry," he added. He said we had spoken to Commerce Minister Chaudhry Ahmed Mukhtar about the problems and he had assured us of some initiatives but nothing has been done so far.
After a lukewarm response from the government, we have decided to go on strike from July 11-15. It would be the first phase and during this phase we will wait for some positive response from the government and if there is no such response, we will definitely go on a complete strike," he maintained. "The 31 percent increase in gas tariff as well as manifold increase in the electricity and petroleum prices, it is very difficult for the textile industry to survive and this would be a huge blow to the economy," he added.
Copyright Business Recorder, 2008