Pakistan has lost an estimated $1.03 billion trade tariff concession package of European Union (EU) due to India’s opposition in the World Trade Organisation (WTO).
The loss would affect the textile sector most as it was expecting duty free entry into EU for 75 of its products. Minister for Textile Makhdoom Shahbuddin said in a brief comment on the issue that Pakistan will not let the concession go easily. He added that he could not say more on the issue until after his meeting with the Ministry of Commerce and Ministry of Foreign Affairs.
The minister said this while addressing the pre-launch ceremony of plots at Pakistan Textile City held here at a local hotel on Thursday.
He said that the government realises the importance of the Textile City project and supports the management of the project in hopes of creating almost 80000 jobs in Sindh. As part of its long term vision for growth the government would continue its support for the success of textile city in order to further enhance Pakistan’s textile shares in the international market, he said. He requested the Turkish government to lift the ban imposed over certain quality of textile products which would affect Pakistan’s export to the foreign country. Talking about the issue of increasing gas prices, Makhdoom said that all concerned sectors including textile would be taken into confidence before adjusting the price of fuel. “Let the president come back, we will discuss the issue” he added.
Addressing the ceremony Director on Board Pakistan Textile City Dr. Mirza Ikhtiar Baig, said that textile is a major sector of Pakistan’s economy making up 56 percent of its exports and 8.5 percent of its GDP. He also said that the sector is providing about 40 percent of the jobs in manufacturing sector. He praised the textile industry for performing well this year and increasing its exports by 30 percent.
“The country will cross $12 billion in exports of textiles this year and for the first time Pakistan will cross its total exports target by $24 billion” he claimed. Pakistan is the second largest exporter of yarn, third largest exporter of fabric and fourth largest producer of cotton. According to a report by the Pakistan high commission’s economic and trade wing the country’s textile sector has grown 17 percent.
In comparison china’s textile sector has grown 12 percent, India’s textile sector 8 percent and Bangladesh’s textile sector 15 percent. Pakistan Textile City, he said, was being formed as a joint public and private venture. The purpose of the project was to develop the first WTO and ISO-14001 compliant textile processing industrial zone. Advisor to Chief Minister Sindh on Investment Zubair Motiwala said that the vision of the new textile city was to create space for new industries, as currently there is no space in the existing industrial areas of the city including SITE, Korangi and Nazimabad. The city will provide a good opportunity to industrialists to relocate and expand their businesses.
“With uninterrupted supply of gas, electricity and water and other public facilities, the new project will facilitate the expansion of textile business”, he added. Motiwala also voiced reservations of the industrial sector regarding the proposed increase in price of gas in the country, saying that it would enhance the cost of doing business and discourage exports. Chief Executive Officer (CEO) of Textile City Zaheer A. Hussain, said that the project would host a large number of textile industries as it has a coal fired 250-megawatt captive power plant, a Combined Effluent Treatment Plant and a Fire Fighting System.
According to the CEO 0.5 to 5 acres plots are available and larger plots can be provided upon request by industrialists seeking to set up composite units. The project is spread over an area of 1250 acres in the eastern industrial zone of Port Qasim and is conveniently located 6km from the national highway. The project master plan includes separate zones for denim, dyeing, weaving, bed linen, towel, apparel, hosiery and knitwear designed to effectively optimize the industry’s growth potential, enhance its productivity and reduce costs.
Textile City to create 80,000 jobs
