Improving textile sector

The Speaker of the National Assembly is gracious enough to resolve the problems of the textile industry to make it one of the best performing industrial sectors of Pakistan once again. I hope the respected Speaker understands that the main reason for the downfall of the textile sector is because they are mostly crooks.
The textile sector has invested all their profits from the time when the sector was the best performer, into properties and shell companies. Panama Papers and Dubai Properties had many prominent textile companies and owners mentioned. While shopping malls and large property projects having textile company names and owners are seen across Punjab. But even still the industry is looking for Government handouts for upgrading their own industries.
It is also worth mentioning that only yesterday it was reported that more than 200 fake companies have been importing textiles without paying any taxes due to zero rated facility for textile manufacturers. The textile sector enjoys zero rated tax on power, utilities, imports and exports for many years, but they have not been able to stop fake companies and flying invoices that are generated on high quantity imports. This is because the high quantity of textile raw material imported is eventually used by the textile industries of Pakistan for undocumented production.
Therefore I believe that all zero rated and other facilities provided to the textile sector should be stopped. And instead the Government of Pakistan, for the sake of our country and its poor cotton farmers should allow and promote Chinese and other foreign companies to set up textile manufacturing using modern technology, with the condition that they will also promote 20% production from other raw sources, like bamboo, plant, silk, polyester etc. The companies can be allowed tax free import of machinery if imported via CPEC route only.
SHAHRYAR KHAN BASEER
Peshawar

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