Share this story!            

Import of shuttle-less textile machines

* Govt offers 10-yr tax holiday to attract investment

Staff Report

ISLAMABAD: Pakistan will try to attract global manufacturers of shuttleless textile machines through the proposed 10 year tax holiday to encourage them to set-up manufacturing units in Pakistan.

The proposed initiatives of the government would result in increase in textile exports by enhancing the production capability of the textile sector, a government official told Daily Times on Monday.

In this regard, Prime Minister Shaukat Aziz has directed the textile ministry to approach global manufacturers of shuttleless machines for assessing their requirement in establishing their manufacturing units in Pakistan and their continued technological upgradation.

A high level meeting chaired by the PM, which reviewed the proposals and initiatives of the proposed Textile Industry Development Policy 2007, was informed that Pakistan’s textile sector lacks latest technology.

In this regard the meeting was proposed offering tax holidays for encouraging foreign investment in textile machinery manufacturing in the country. Proposal submitted during the meeting suggested that textile industry being the largest industrial sector of Pakistan requires a sizeable machinery manufacturing bases inside the country. Textile machine manufacturers are relocating in China and it is the right time to attract machine manufacturing in Pakistan. Till now the import of textile machinery shares a big part of foreign currency outflow in annul trade bill.

To attract foreign investment in textile machinery manufacturing incentives, like zero rating for import of plant and equipment, tax holidays for initial 10 years, inclusion of their end-product in any future scheme designed to subsidise the import of textile machinery, be allowed.

The Ministry was also of the view that these incentives may not prove attractive enough. The government should consider that an additional package for provision of land on concessionary terms may also have to be included in the package, the official added.

According to the official, PM has also directed that the textile ministry and concerned provincial governments and ministries need to emphasise on launching awareness and educational programmes relating to the cotton and enforcement of respective Cotton Control Acts.

Suggesting target-oriented approach, the PM also directed the textile ministry that there is need for milestone and timelines to be fixed for implementation of various actions and measures proposed in the policy.

In the area of skilled development and improved competitiveness, the PM desired that use of resources under Competitiveness Support Fund (CSF) be explored. Training facilities of provincial technical education and vocational training institutions and national vocational and technical education commissions be availed to improve professional skills.

Mr Aziz asked the authorities that research links with engineering universities and other such institutions be established and legal status of the National Textile University Faisalabad be evaluated for proper funding by Higher Education Commission.

Home | Business

Share this story!