FAISALABAD. Value added textile sector is the only available panacea to overcome the drastic decline in foreign remittances and to bridge the widening gap between imports and exports, said President Faisalabad Chamber of Commerce and Industry (FCCI) President Engineer Muhammad Saeed Sheikh.
He was talking to a delegation of Faisalabad Dyes and Traders Group that visited FCCI to congratulate newly elected office bearers of the chamber.
He said that the Pak economy is entirely dependent on textile exports and foreign remittances. Unluckily due to economic meltdown in Saudi Arabia, the foreign remittances have recorded a steep decline. “Still we are expecting negative impacts of Qatar and Gulf turmoil on our foreign remittances”, he said and added that in order to save national economy from complete annihilation, and we have to concentrate on the value-added textile sector.
He said that government must take immediate steps to revive and increase the productivity of existing textile units in addition to formulating an incentive based policy for the revival of sick units. He clarified that spinning is not only the textile and for the revival of economy, we have to focus on textile processing industry which has capacity to prepare shirts from half meter cloth and sell it in the international market from 10-70 dollar.
Continuing, Engineer Saeed said that the major foreign exchange earning sectors were always ignored in Pakistan. “Textile processing industry has been heavily taxed that has already made us unviable and uncompetitive with our regional neighboring countries. He specifically mentioned shortage and high tariff of electricity and gas but said that despite of these negative factors, the core issue is the policy. He termed the current policy as anti-textile and anti-industry and told that the businessmen waging “Jehad” for the economic sovereignty of Pakistan are lifted and put behind the bars on the frivolous allegations of Dengue Larva. He said that such steps are very disappointing and Government must change its mindset and policies to support the industrial sector. He said that the existing laws and policies have made us criminals in the eyes of 31-50 different departments created in the name of good governance.
He said Pakistan needs only one department that should deal with the industrial sector and all other related departments either be merged in it or regulated though a “One-Window” system. He further said that the industry is not only important to earn foreign exchange but was also providing jobs to 38 percent of the workforce in the country. Hence Government is bound to encourage it on permanent basis.
Commenting on the much trumpeted zero-rating; he said that textile industry is not beneficiary of the 3% sales tax eliminated under this scheme. He said that the prices of yarn have not been subsequently decreased. President FCCI said that this sales tax was earlier refunded to them but now in the garb of zero-rating regime, we have been totally deprived of it. He said textile processing and dyes and chemicals traders group share the identical problems and hence, we must pool our energies to achieve our common objective to strengthen value added textile and its ancillary sectors.
He clarified that dyes and Chemicals traders group has reasonable representation in FCCI and hence they should convince their members to get the membership of FCCI also as it will add to our joint strength.
SVP Rao Sikandar Azam Khan said that chamber is the name of teamwork and we must make collaborated efforts to solve the problems confronted by our members.
Vice President Engineer Ahmed Hassan said that the office bestowed to them is the trust of 5000 members of FCCI and we will continue our sincerest efforts to solve their problems.
Later Khawaja Javaid of Dyes and Chemicals Traders Group garlanded and presented bouquets to the newly elected office bearers of the FCCI.
