LAHORE
There is unanimous accord among the major decision-makers that the fundamental principles of the free market must not be disrupted, and the government would not attempt to intervene in setting the domestic price of raw cotton, given prices prevailing on the world stage.
This was stated by Federal Adviser on Textiles Dr Mirza Ikhtiar Baig, while addressing a joint press conference with All Pakistan Textile Mills Association Chairman Ejaz Gohar at the APTMA House on Friday. The recent elevation of the cotton prices is expected to provide an additional Rs 220 billion to cotton farmers.
He said that President Asif Ali Zardari had backed adherence to the principles of the free market in his recent meeting with the APTMA chairman. European Union (EU) concessions were introduced through an internal decision making process of the organisation.
It is expected to augment textile exports amongst others. It was hoped that the EU would at least include men denim jeans in the list by Monday, providing concessions on ladies jeans was meaningless. Global textile machinery manufacturers deem Pakistan to be a major destination for their products.
The fact that 450 foreign suppliers of premium textile machines established their stalls in the Expo of textile machines bore strong testimony to this fact. Elaborating, he also cited the fact that up to 20 Indian suppliers had participated in the expo a good omen.
The fact that these firms have the capacity to produce Italian, Switzerland, Japanese and German brands under license was an attractive feature. Their rates he added are much lower than the same brands made in Japan and Europe.
Regarding the import of cotton from India Dr Baig said that government would press the Indian government and compel them to honor the commitments made by Indian cotton exporters to the Pakistani spinners. He said a similar dispute regarding import of 200,000 bales was amicably resolved last year.
“Our industry needs cotton as the local crop is insufficient” he said advising the spinners to immediately find other sources for cotton in the world as price escalation is unlikely to ease.
Earlier, APTMA Chairman Ejaz Gohar in his address said that the textile sector is at a turning point where the right government policies and aid is essential. There is a pressing need to overhaul and invest at least $2 billion in new machines and equipment.
An assurance given by the President on maintenance of free market economic policies has given badly needed confidence to businessmen. The issue of energy shortage in the industry remains a problem of profound magnitude and it requires the greatest prioritisation in Pakistan’s policies.
He asked the government to push for improved market access in other developed regions including US, Canada and Japan. He also demanded that the government form an independent board to review the progress made on the requirements placed upon Pakistan to qualify for GSP plus status after present concessions extended by the EU expire in 2014.
