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    Pakistan Suspended Textile And Garment Industry

    2011/7/26 9:27:00 39

    Garment Industry Subsidy In Pakistan

    The federal government of Pakistan has announced that it has suspended its budget expenditure for 2011~2012.

    textile

    And clothing industry subsidies.


    The Pakistan textile and garment industry subsidy scheme is part of Pakistan's national textile policy in 2009~2014.

    However, judging from the state budget allocation for the fiscal year July 1, 2011 ~2012 in June 30th, the Palestinian government has not budgeted for the new budget for the textile and garment industry.


    The related plans of the textile and clothing industry affected by Pakistan include support subsidy scheme for textile industry investment case, local tax rebate scheme, R & D subsidy scheme, VAT reduction, and other textile policies and measures.

    The Ministry of textiles of Pakistan has recently confirmed that the local tax rebate scheme (DLTL) has been abolished since June 30, 2011.


    According to the Pakistani textile policy, the government of Pakistan has made textiles in the past two years.

    tailoring

    The total budget allocation is 82 billion rupees (about 957 million US dollars), but the tax rebate approved by the budget is only 17 billion 500 million rupees (about 204 million US dollars).

    Wasim Latif, chairman of the Pakistan Textile Exporters Association (PTEA), believes that if the DLTL tax rebate scheme is not extended, Pakistan's textile exports will fall, and the subsidy measures are the key to helping Pakistan enterprises to remain competitive in the international market.


    At the same time, due to the withdrawal of the export support system by the Pakistan government, some garment manufacturers in Pakistan are now pferring to Bangladesh.

    A spokesman for the Pakistan garment processing Association (PRGMEA) said that a considerable number of Pakistani businessmen are exploring the market.

    Bangladesh has good western market access and relatively complete market access.

    garment finish

    Industry support policy is an important factor to attract Palestinian businessmen.


    The spokesman said that at present, Bangladesh and China, India and other textile giants all offer different degrees of export tax refund system to textile exports.

    The Pakistani government adopted similar policies in the fiscal year of 2010~2011, prompting textile exports to reach US $14 billion in export history, but the Palestinian government lifted the export support system from July 2011.

    PRGMEA appealed to the government to continue to implement the system to keep relevant industries in Pakistan and to maintain export competitiveness of related products.

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