PHMA for maximum value addition to reap GSP plus benefits

Lahore

PHMA Chairman Dr Khurram Anwar Khawaja Saturday called for relaxation in import policies as benefits of renewed GSP Plus (Generalised System of Preferences) status could only be harvested by maximum value-addition in the finished products rather than exporting only raw materials.
The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) chairman, in a statement, said raw cotton exports from the country during eight months (July-Feb 2017-18) of current financial year grew by 38 per cent as compared to the corresponding period of last year.
Dr Khurram urged the government to take steps to abolish all duties and taxes imposed on the polyester yarn, enabling the knitwear and sportswear industry to compete in the international market and to earn valuable foreign exchange. He asked the government to appreciate the role of value-added apparel sector for its potential to harvest maximum benefits of GSP Plus, providing mass employment to the jobless population of the country.
He said the GSP window had opened tremendous opportunities by way of inflow of abundant export orders which the industry would not be able to execute if liquidity problem of industry was not resolved at the earliest.
The PHMA chairman said billions of rupees against previous Drawback of Local Taxes and Levies (DLTL) Order 2009 since 2011; Incremental DLTL Order 2014-15 since June 2015; Incremental DLTL Order 2015-16 since April 2016; Incremental DLTL Order 2016-17 since April 2017 and DDT under PM Export Package 2017 of exporters were pending that were causing liquidity problems to exporters in keeping up their export commitment, which must be released immediately to streamline cash flow. The implementation of revised PM package was must for enhancement of exports at desired level, he said and called for restoration of the associations’ role in the DDT Order 2017-18 in view of their productive and contributory services.
He urged the authorities concerned that revised notification should be issued in consultation with the stakeholders, restoring the required clause of ‘Association Role’ for true implementation of PM Package.
He said that major local manufacturers of polyester yarn manufactured only Draw Textures Yarn which was textures and they did not manufacture polyester Fully Drawn Yarn (FDY) but the anti-dumping duty was also imposed on the FDY which was not locally manufactured. Knitwear export industry was adding manifold value to basic commodities like raw cotton and yarn and it alone fetched foreign exchange of more than two billion dollars for the country which was highest of all, he concluded.—APP

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