Category Archives: Industry News

Pak President says textile sector is economy’s lynchpin

Pakistani President Arif Alvi recently said the textile sector is the economy’s lynchpin, contributing 60 per cent of the country’s exports and 40 per cent of industrial employment. He told this to a delegation of the All Pakistan Textile Processing Mills Association (APTPMA) in Faisalabad. Despite tough economic conditions, he assured measures to improve the economy.

The government is trying its best to reduce trade deficit by curbing import of non-essential and luxury items and by reducing the cost of doing business, he said.

The government is formulating a Strategic Trade Policy Framework (STPF) for the next five years with focus on reducing cost of production and encouraging investment in export-oriented sectors, Pakistani media reports quoted the president as saying.

To fully utilise the potential of the textile value chain, a textile policy is being drafted for 2019-24, he said.

source: www.fibre2fashion.com

Imran’s govt promises incentives to textile exporters

KARACHI: The Pakistan Tehreek-e-Insaf (PTI) government has decided to continue providing incentives to the country’s leading textile sector in a bid to boost value-added textile exports to $30 billion over the next five years.

“A road map to grow value-added textile exports to $30 billion, through a comprehensive textile policy (for the next five years – 2019-24), will be rolled out by the task force led by Dr Salman Shah in the next eight weeks,” Pakistan Textile Exporters Association (PTEA) Patron-in-Chief Khurram Mukhtar said, after holding a series of meetings with high government officials from May 8 to 19.

The Punjab government has recently appointed Shah as the adviser to the Punjab chief minister on economic affairs and planning.
The PTEA patron-in-chief, along with other colleagues and delegates, held a series of meetings with Adviser to PM on Finance Dr Abdul Hafeez Shaikh, Adviser to PM on Commerce and Textile Abdul Razak Dawood, Federal Board of Revenue Chairman Shabbar Zaidi and other key officials at the Ministry of Finance in May.

The previous five-year Textile Policy 2014-19 is going to expire by the end of June 2019. The government has, however, failed to achieve the target of doubling value-added textile exports to $26 billion under the policy.

“Textile exports in first nine months of the current fiscal year, however, grew 19% in quantity and 3% in value due to the exchange rate adjustment,” said Mukhtar.

Key Incentives

“The special energy package will continue for the five zero-rated sectors; electricity at 7.5 cents per kilowatt-hour and gas at $6.50 per MMBtu,” he said.

The government has decided to increase financing under the subsidised export finance scheme (EFS) and long-term financing facility (LTFF). “Currently, the total textile sector exposure stands at Rs1,009 billion. The share of subsidised loans stands at 41% of the total exposure,” he said. “The EFS ceiling will be increased by Rs100 billion and that of LTFF by Rs200 billion,” he added.

“The drawback of local taxes and levies (DLTL) scheme will continue for the five zero-rated sectors,” the patron-in-chief said.

DLTL was announced in the outgoing textile policy for the exporters of textile products on the free-on-board value of their enhanced exports on an incremental basis if exports increased more than 10% over the previous year’s exports.

In the meetings, it was noted that the zero-ratings of export sectors is a sensitive issue. The FBR chairman will take a final decision in this regard in consultation with all stakeholders.

The Ministry of Finance has released Rs12 billion in refunds under the Duty Drawback of Taxes (DDT) scheme for the textile and non-textile sectors, which was received by all exporters recently.

Road map for remaining refunds of Rs115b

The Federal Board of Revenue (FBR) would issue promissory notes for sales tax refunds of Rs40 billion by the end of May if all exporters opened an account with the Central Depository Company (CDC). Sales tax refunds stand cleared till November 30, 2018, he said.

Another Rs25 billion would be released for the DLTL/DDT schemes till June 20, 2019. The FBR will also issue promissory notes of Rs50 billion having sales tax refunds and income tax by the end of July 2019. The promissory notes will be of three-year tenure with an interest rate of 10%.

The meeting decided on a 5% customs duty to be applied to raw cotton imports from July 1, 2019. Support price will also be announced for the raw cotton based on export parity.

Source: www.tribune.com.pk

Pakistan’s textile-apparel exports likely to hit $15 bn

Pakistan’s textile and apparel exports are likely to rise to $15 billion during the remaining period of the current fiscal, according to the All Pakistan Textile Mills Association (APTMA), whose chairman Syed Ali Ahsan recently appreciated the government for recognising the export sector and providing regionally competitive energy to five zero-rated sectors.

APTMA patron-in-chief Gohar Ejaz said the availability of energy at competitive prices has increased textile exports by 8.5 per cent in January compared to the corresponding month of the previous fiscal, according to Pakistani media reports.

The annual exports of $3.5 billion worth yarn and fabric may boost textile exports to $14 billion, he said.

He urged the government to constitute a task force on cotton production to achieve 15 million bales and ensure its enhancement, sustainability, acquisition of high yield cotton technology, and provision of agricultural extension services.

The government should liquidate all textile Industry refunds of sale tax, income tax, and policy and package initiatives, he said.

Integrated textile and apparel parks should be established and a special task force on the revival of closed mills is critically needed, he added.

Source: www.fibre2fashion.com

IGATEX Pakistan brings the best of international textile and garment technology to Pakistan.

IGATEX Pakistan has now developed into one of the largest and well established garment and textile machinery exhibitions in South Asia. The 12th edition of IGATEX PAKISTAN inaugurated on 26th February at Karachi Expo Centre. The Opening Ceremony has been inaugurated by Mirza Ikhtiar baig along with other Guest of Honors including Turkish consulates, Italian consulates, President IDC, and Presidents of textile associations.

Located at the crossroads of Asia, Pakistan has become a focal point for investors in the region having gained recognition as an important market among other textile manufacturing countries of the region. Pakistan is the 8th largest exporter of textile products in Asia. This sector contributes around 8.5% to the GDP and provides employment to about 40% of the 49 million workforce of the country. Pakistan is the 4th largest producer of cotton with the 3rd the largest spinning capacity in Asia after China and contributes 5% to the global spinning capacity.

IGATEX PAKISTAN 2019 provides the exhibiting textile machinery manufacturers by providing them an opportunity to directly offer their technological solutions to quality buyers and decision makers in an exceeding competitive global business environment.

More than 20,000 trade visitors are expected to meet with representatives of more than 500 textile technology suppliers the world has to offer to deliver their state of the art equipment and solutions.

30+ countries are showcase cutting edge technology and developments in the industry. The visitors at the show will be the key decision makers from the entire supply chain of Pakistan’s textile industry who shall witness the latest innovations and technological trends by leading global technology suppliers.

More than 116 Chinese exhibitors form the largest exhibitor group at the exhibition followed by 92 companies from Italy, 75 from Germany, 25 each from Japan and Switzerland. Other countries present at IGATEX 2019 are France, Belgium, Austria, Korea, United Kingdom, United States of America, Brazil, Thailand and many more.

The highlights of the exhibition include country pavilions from Turkey and China.

Department of Commerce of Zhejiang province in China has organised a pavilion for their best companies to showcase their machinery in textile finishing, nonwovens, spinning and garments technologies.

An International Conference is also planned as comprising of local and international experts to share their in depth knowledge with the delegates.

The mega event organized by FAKT Exhibitions will forge business relationships with the goal to find new investment opportunities to bring development and progress in the textile industry.

Textile industry committed to achieve $30b exports

LAHORE – APTMA Patron-in-Chief Gohar Ejaz said the industry is committed to achieve $30 billion exports, undertake new investment initiatives and create millions of sustainable jobs. He said the immediate focus of the government should be on increase in cotton production by doubling cotton yield to 1200 kg per hectare from existing 660 kg. Presently, he said, the industry is dependent on import of 3.5 million bales to meet its consumption by spending precious foreign exchange worth $1.1 billion dollar per annum. An improvement in the cotton yield can take production to over 20 million bales that will save foreign exchange on the one hand and earn around $3 billion on the export of surplus cotton.

According to him, there is an urgent need to provide a long term export-led growth policy. In the past, he pointed out, all such policies given by the previous governments from time to time could hardly see 15 percent implementation. He added that policy implementation should be the focus of the economic managers of the country that would enable the industry and exports to grow at more than 10-15 percent per annum without interruption and yield precious foreign exchange to mitigate trade deficit.

He said there is a dire need to increase credit allocation to the industrial sector and release of liquidity lying pending on account of sales tax and DLTL should be processed expeditiously to augment a turnaround in the industrial productivity.

He further added that the textile industry has envisaged to achieve 20 million bales of cotton production, one million ton polyester fibre, $28 billion textile and clothing exports, increase in share in global exports by 3.5% of textile and 2.7% of clothing, 6 million direct labour force and $1.4 billion new investment per annum by 2023-24, i.e. during the tenure of present government.
He expressed the hope that the recommendations made by the industry associations would soon be materialized in order to tap the potential of the textile industry in earning foreign exchange, bringing in investment and creating jobs to ensure a prosperous and developed Pakistan under the dynamic leadership of Prime Minister Imran Khan.

Souce: www.nation.com.pk

Boost for Textiles as Indonesia announces concessions for Pakistan

Syed Mazhar Ali Nasir, Senior Vice President, FPCCI, during his recent visit to Turkey raised matters related to textile and surgical goods imported from Pakistan. Meanwhile, Indonesia unilaterally announced concessions on 20 tariffs and Chinese delegations have arrived for purchasing high-quality fabric.

According to FPCCI sources the official while attending CACCI Business Forum – 2018 held in Istanbul also called on – Turkish Vice-President Faut Oktay and discussed the rise in duties on textile goods imported by Turkey from Pakistan.

Abdur Razak Dawood said the government is committed to narrow the trade deficit and in this regard, a comprehensive strategy is being initiated to get market access to potential markets of the world.

Nasir brought into the notice of Turkish Vice President that increase in the duty from 18 percent to 26.4 percent had resulted in the reduction of exports of Pakistan to Turkey. It was said to had declined by 69 percent, that is, to 282 million dollars in 2017 from 906 million dollars in 2011.

Syed Mazhar Ali Nasir was said to have also referred to the export of surgical instruments being produced in Sialkot (Pakistan) and imported by Turkey under German brand Names. FPCCI official submitted before the Turkish Vice President that strong brotherly relations between the two countries must be stabilized in the economic-terms too.

Seeking regular dialogue between business communities of the two countries, Nasir suggested single country exhibitions and B2B meetings. Indonesia has notified unilateral concession on twenty tariffs to Pakistan to provide it more market access through expansion of Preferential Trade Agreement between the two countries.

This was stated by Adviser to Prime Minister on Commerce, Textiles and Investment, Abdul Razak Dawood while addressing a press conference in Islamabad. The Adviser said the concession will provide market access to Pakistan’s textile and agriculture items including rice, mangoes, and citrus, ethanol, home textile, and towel.

He said after this trade facility, there would be a further increase of around one hundred fifty million dollars in Pakistan’s exports to Indonesia. Abdur Razak Dawood said the government is committed to narrow the trade deficit and in this regard, a comprehensive strategy is being initiated to get market access to potential markets of the world.

Nasir brought into the notice of Turkish Vice President that increase in the duty from 18 percent to 26.4 percent had resulted in the reduction of exports of Pakistan to Turkey.

He said the Ministry of Commerce has evolved a comprehensive National Tariff Policy, which would be presented before the Cabinet for approval today.

Meanwhile, A Chinese delegation from China National Textile & Apparel Council (CNTAC) led by CEO Textile Mills Management, Shahid Nazir Masood and CEO of Shanghai Challenge Textile Mr. Robert, visited Punjab Board of Investment and Trade. The objective of the visit was their keen interest in developing business in Pakistan specifically in the textile sector for changing the economic landscape of the country.

CEO PBIT Burana welcomed the delegation and briefed them about the core functions of PBIT as an Investment Promotion Agency. He stressed on two types of investments, one that is immediate by the acquisition of potential points of existing textile industry and the other one of Greenfield Investments. He highlighted that the new government is highly interested in strengthening the economic bond between the two countries in the light of CPEC and OBOR.

He told the delegation that a team will be designated from PBIT that will work with them in order to identify potential opportunities in the specific sector. He further said that the Investment Advisory Team of PBIT will facilitate them regarding the entire procedures for establishing or expanding the businesses in Punjab through its Special Economic Zones such as Quaid-e-Azam Apparel Park.

Source: https://www.globalvillagespace.com

Textile sector is all set to benefit from new government’s export-led policies

KARACHI: Textile sector is all set to benefit from new government’s export-led policies and rupee devaluation of around 22 percent against the US dollar since December last year, a brokerage analyst said.

“Rupee devaluation after three years of inflexible exchange rate is likely to restore the lost competency of textile companies,” Shankar Talreja, an analyst at Topline Securities said.

Besides, the government reduced energy tariff for Punjab-based five export-oriented sectors, including textile, to $6.5 per million metric British thermal unit (mmBtu), down 35 to 50 percent compared to the previous rates.

“With this move, Pakistan’s energy tariff comes in tandem with the regional countries (like, India and Bangladesh) at $5 to 7/mmbtu, which will help Pakistan in competing with these countries,” Talreja said.

The country is negotiating phase-II of free trade agreement (FTA) with China, “which would be a breakthrough for textile sector as currently Pakistan is paying tariff of 3.5 percent on yarn versus zero percent on Bangladesh and Asean (Association of Southeast Asian Nations) countries”. Tariffs on other textile products range from 4 to 9 percent versus zero percent in Asean countries, including Indonesia, Malaysia, Thailand, Philippines, and Vietnam. “We believe rationalisation of these tariff rates in FTA phase II would unlock potential of textile exports to China,” the equity analyst said.

Talreja further said US-China trade war is an opportunity for the regional players.

The US imposed tariffs on Chinese goods worth $250 billion and threatened to impose further $267 billion in tariffs. US imports from China were down 30 percent in August and September.

“This provides an opportunity to countries like Pakistan, Vietnam, Bangladesh and India to expand their footprints in the US market,” the analyst said.

The government is striving to increase exports among other options by reducing energy tariffs, providing incentives like drawback duties, and cheaper financing under long term financing facility and export refinance facility.

Under the strategic trade policy framework, the government set export target of $46 billion by 2023.

“We believe, aforementioned measures/steps are likely to help Pakistan textile sector to achieve its ambitious exports target,” Talreja added.

Source: www.thenews.com.pk

Chinese investors desire for Joint Ventures with Pakistan in textile sector

LAHORE – Realizing Pakistan’s potential as 4th largest cotton producer, the Chinese investors expressed their deep desire to enter into joint ventures with Pakistan for importing high quality fabric to China that would help in improving bilateral trade and economic relations between the two countries.

A Chinese delegation from China National Textile & Apparel Council (CNTAC) led by CEO Textile Mills Management, Shahid Nazir Masood and CEO of Shanghai Challenge Textile Mr Robert, visited Punjab Board of Investment and Trade. The objective of the visit was their keen interest in developing business in Pakistan specifically in the textile sector for changing the economic landscape of the country.

CEO PBIT Burana welcomed the delegation and briefed them about the core functions of PBIT as an Investment Promotion Agency. He stressed on two types of investments, one that is immediate by acquisition of potential points of existing textile industry and the other one of Greenfield Investments. He highlighted that the new government is highly interested in strengthening the economic bond between the two countries in the light of CPEC and OBOR. He told the delegation that a team will be designated from PBIT that will work with them in order to identify potential opportunities in the specific sector. He further said that the Investment Advisory Team of PBIT will facilitate them regarding the entire procedures for establishing or expanding the businesses in Punjab through its Special Economic Zones such as Quaid-e-Azam Apparel Park.

The representatives of Chinese companies said it was their first visit to Pakistan for exploring trade and investment opportunities. They stated that China has now globally established itself as the finest textile producer. The investors showed immense interest in investing in Pakistan as it is amongst the largest cotton producers in the world and their high quality fabric can be exported to China thus enhancing the productivity and boosting trade relations between the two countries.

They requested that Chinese investors should be provided with specific promotion incentives to deepen trade relations. They invited PBIT and potential investors from Punjab for showcasing their products in the biggest textile expos conducted in Shanghai.

CEO PBIT told them that Minister for Industries, Commerce and Investment, Punjab is interested in visiting China with delegates from our textile sector for further economic cooperation. He proposed that a joint working group should be constituted between PBIT and CNTAC to explore possibilities of promotion & cooperation between Punjab and China specifically in textiles. He also proposed a meeting with the said Minister and signing of memorandum of understanding as a concrete step towards mutual efforts for augmenting industrial relations.

 

Source: www.nation.com.pk

Pakistan textile, garment export edge up in Q1

Pakistan’s apparel and textile exports edged up only 0.86% in the first quarter with the former sector weighing on overall results.

Pakistan saw the value of its textile and garment exports edge up nearly 1% in the first quarter of the year, with the latter sector weighing on the overall result.

Figures from the Pakistan Bureau of Statistics (PBS) show Pakistan’s textile and ready-made garment exports climbed 0.86% in the July to September period to US$3.28bn from $3.26bn last year.
Separately, ready-made garment exports dropped by 1.5% to $599.3m from $608.7m in the year-ago period, the data revealed.

Textile exports, meanwhile, were up 1.13% to $2.68bn, boosted by 9.8% growth in knitwear exports to $710.2m. Cotton cloth also contributed, increasing 0.09% to $529.1 m.

Raw cotton, however, saw a slump in exports of 76.2% to $7.05m from $29.6m a year earlier, while the export of cotton yarn dropped by 2.25% to $313.7m.

Textiles and apparel contribute nearly 70% to Pakistan’s total export earnings.

According to an overview of the country, Pakistan is the world’s fourth largest cotton producer, one of the world’s largest cotton users, and the sixth largest textile exporter.

The country’s current Textile Policy, which runs from 2015-2019, aims to double textile and clothing exports to US$26bn by 2019. Pakistan benefits from zero duty on exports to the EU under the GSP+ scheme – although business is hampered by safety/security issues and the sector faces mounting pressure from Asian competitors.

 

Source: www.just-style.com

IGATEX PAKISTAN 2018 will be BIGGER and BETTER

The 11th edition of International Garment, Textile Machinery Exhibition (IGATEX) organized by FAKT Exhibitions (Pvt) Ltd. will take from 26th – 28th April, 2018 at Lahore Expo Centre.
IGATEX PAKISTAN 2018 will be a professionally enriching experience for textile machinery manufacturers, providing them an opportunity to directly make their equipment available to quality buyers and decision makers in an exceedingly competitive global business environment.

This year IGATEX will be much bigger than previous editions as it will be taking place in 3 Halls of Lahore Expo Centre including participation of more than 500 Exhibitors from 30 countries. Participation coming from China, Italy, Germany, France, Japan, Russia, Switzerland, Turkey, UAE, USA, UK etc. There will be thousands of visitors expected to visit this mega event.

The CEO of FAKT Exhibitions, Saleem Khan Tanoli, said that the exhibition will showcase stand-alone demonstrations of various cutting edge industry tools & technology and will display the latest machinery, chemicals and equipment used in the textile industry.

A 2-days high-level conference is also planned on 27th and 28th April’ 2018 where International and local speakers will participate and share their knowledge and experiences with the audience. The conference topics related to Technical Textile, Merchandising and Supply Chain will be discussed by some renowned speakers like Dr. Tanveer – National Textile University, Dr. Yasir Nawab – National Textile University, Dr.Hafsa Jamshaid – National Textile University, Theo Verweerden – Lamoral Coatings B.V., Claudio Bertolotti – Mesdan Spa, Marino Bazzoni – EFI Reggiani, Michael Bo Kristoffersen – Brueckner Textile Technologies, Bruno Caffieri – Picanol N.V. and many more.

Mr. Saleem Khan Tanoli said that IGATEX Pakistan 2018 will provide a premium platform for all textile stakeholders, government regulators, associations and academia to enhance business networking, knowledge sharing and to build profitable relationships in the long run.

The most important objective behind organizing this exhibition under 1 roof is to highlight and find new investment opportunities in Pakistan’s textile sector. This event would be an ideal venue to build and develop business relationships with key professionals so they may discuss the dynamics of development and growth of the industry.

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