Cut import duty to make textile exports competitive, experts
29 May '06
1 min read
Textile Ministry is working hard to develop country's industry and believes that to acquire recognition in the international market, quality of the product should be raised to global standards.
Ministry has proposed to the Government that five percent of the customs duty on import of textile machinery and the duty on oil be removed.
Experts say, ”If the proposal is accepted, large textile units with aggressive BMR and expansion plans would enormously benefit”.
Ministry has also demanded the removal of withholding tax of 1.25 percent and export development charges of 0.25 percent to make Pakistani textile products competitive in the international market.
Textile industry has made an investment of $5 billion to expand its production capacity in the last five years to capture a big share in the international textile trade, which is estimated to be around $400 billion, currently.
Textiles is an export oriented sector accounting for almost 65 percent of the total exports of the country
Pakistan's current share in the world textile market is just three percent.
However, analysts believe that if this share is maintained, then the textile exports alone have the potential to reach $24 billion.
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