Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has endorsed the demand of PM Advisor on Commerce Abdul Razak Dawood to seek zero-rating regime for whole textile chain in the Textile and Apparel Policy 2020-25, stating the apparel sector is eagerly waiting for the approval of it from the ECC to make future marketing plan in the light of new policy.
In a joint statement issued here on Thursday, PRGMEA central chairman Sohail A. Sheikh and chief coordinator Ijaz Khokhar observed that restoration of zero-rating status of the textile sector is vital to maintain the momentum of present enhanced exports, as currently the sector is working at full capacity to meet the high demand of export orders.
“It is absolutely essential to sustain this momentum, as economic activities are largely restored to pre-Covid levels in the first quarter of current fiscal year 2020-21, PRGMEA central chairman said.
He said that the uptrend indicated a promising growth ahead in all major sectors especially the value-added apparel industry, but the risk of record high yarn prices amidst its severe shortage has continuously been posing a major threat to exports growth.
Apart from announcing five-year textile policy, the government will have to introduce some soft package for short-term period for the apparel industry to sustain the present growth as yarn prices has increased by 30-40% while availability is also very critical, he observed.
Sohail Sheikh said that the government can support the industry by restoring the zero rating of sales tax regime besides allowing duty-free cotton yarn, as the industry is hitting hard owing to shortage of its major raw material.
Moreover, existing available stocks of cotton yarn are of the poor quality to help any sort of apparels manufacturing for export purposes.