Garments industry hails govt Indian import decision

KARACHI - The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has warmly welcomed the Pakistan government’s decision to start import of prescribed non-traditional items from India.
Talking to the newsmen at his Sialkot office here Saturday, the former PRGMEA Chairman Ejaz A. Khokhar said that the Pakistan could capture the huge Indian markets of garments if the Pakistan might discuss the important issue of reducing the high import duty on Pakistan garments in India under the Free Trade Agreement (FTA). He said that if this import duty on Pakistan garments is reduced by India then Pakistan would be able to capture the huge Indian market of garments by exporting the best quality garments, denim, Shalwar Qameez and ladies wears to India.
He urged the Pakistan government to ensure the imports of only raw materials from India instead of importing the finished products from India. He said that if Pakistan imported the finished products from India then the manufacturing sector of Pakistan would be affected badly.
He said that the “Both Sides” should also abolish all the Tariff & Non Tariff Trade Barriers between Pakistan and India.
Former PRGMEA chief said that the Pakistan government should also allow importing the motorcycles and CNG cars from India, besides, importing the CNG buses from India. He said that the imports of motorcycles and CNG cars would also end the high margins of profits of CNG cars in Pakistan, besides, reducing the prices of high prices of CNG cars in Pakistan. That step would also help in the provision of CNG cars of affordable prices in Pakistan.
Ejaz A. Khokhar said that the government has badly ignored the country’s Textile Sector in the Trade Policy for year 2008-09. He said that the export target of US$ 22.1 billion could never be achieved without focusing on the development of textile sector, which has been generating 2 million work forces in this industry. He said that the government would also lose the huge revenue to be collected from the textile sector, as this revenue was more than the R&D subsidy by the government to this industry. He said that the government should announce minimum 9 percent R&D subsidy for textile sector’s development in Pakistan.
UNISAME: The Union of Small and Medium Enterprises (UNISAME) has welcomed the Trade Policy, saying it is an effort to encourage the manufacturing units by facilitating import of machinery and raw materials. The Union welcomed the outlook to purchase from India as freight charges would be reduced due to proximity.
President UNISAME Zulfikar Thaver said the local industry needs protection and until and unless the imports of cheap sub standard goods is not blocked the local industry will remain in turmoil as the imported goods are being sold at lower prices against local goods which are of higher price but better quality but the customers who are under constrains due to inflation are tempted to buy cheaper goods. He urged the govt to impose dumping duty on imported goods to enable local goods made of indigenous and imported material compete the heavily under invoiced and dumped goods.
KCCI:  “The Trade Policy 2008-09 has facilitated the import of old buses and other vehicles may make Pakistan a favourite dumping ground” said Majyd Aziz, a former President of Karachi Chamber of Commerce and Industry, in his remarks on the Trade Policy.
He further stated that the misuse of job lots facility would prove damaging for the local industries, especially the domestic textile industry. This decision is actually moving Pakistan backwards rather than forward. The environmental impact by the used vehicles would be disastrous.