• The concerned Government agencies like EPB and BOI should make a concerted effort to uplift the country image.
• A Textile Board (TB) should be established to continuously monitor the policy implementation and coordinate all the Government-related affairs in textile sector.
• Constitute TB by nominating members from public and private sector and providing the legal framework to define its role.
• To improve the country image as a quality textile product supplier and to facilitate the international buyers in Pakistan, Textile cities should be established in Karachi and Lahore.
• Initiate a study for establishment of textile cities.
• Revive the already established Federal Export Board (FEB) and hold regular meetings every alternate month. Timely remedial action should be initiated by the concerned authorities in case the performance is below the set targets.
• Ministry of Commerce should develop its strength for dealing with the listed issues.
• Participants of any trade fair from Pakistan should be meeting certain minimum standards.
• Steps should be taken to ensure dissemination of information to the exporters.
• Set up help desks in concerned Government departments for the purpose.
• Augment existing crop estimation committee with satellite monitoring.
• TCP should act as price stabilizing third buyer for lint. It should purchase lint at export parity price and act as a market maker in case a situation arises. (Phutti price falls below the economic threshold for the growers).
• Committee should be formed to study the pros and cons of Cotton Hedge Markets.
• Phutti and lint grading standards of Pakistan Cotton Standards Institute (PCSI) should be implemented.
• Ginning research institute should be established to support the ginning industry.
  

TARIFF:

• Ensure free availability of inputs for exporters.
• Revamp temporary import schemes.
• Pass book system.
• Involvement of commercial banks in monitoring temporary imports.
• Cotton should be allowed to be trade freely.
• Remove excise duty on import of cotton lint greater than 28 mm staple length.
• Imports of saw gin blades should be exempt from customs duty till the time that it is manufactured locally.

FISCAL & MONETARY:

• The rate of export refinance should be reduced keeping in view the recent reduction in interest rates in the country.
• The hurdles towards those cash awards on better export performance should be removed and awards should be given to the deserving exporters.
• Initiate a scheme (Export Growth Project Finance (EGPF) for provision of long-term credit at lower rates to textile industry, in which the amount of credit is linked with the past year's performance of the exporter. Interest rates in this scheme will be cascaded according to the extent of value addition in the textile value chain, the highest value-added sector getting the lowest interest rate. In case of forward integration, interest rate will be lower than that in case of backward integration.
• Rebates and duty drawback rates should be calculated on the basis of input output coefficients.
• Timely revision in the rates should be made in case of increased input cost.
• A vendor whose 80% of production is consumed for producing export goods should be treated as an Indirect Exporter and be able to avail the benefits of a similar tax structure as for direct exporters.
• Sales tax on cotton lint and oil cake at the ginning stage should be abolished.
• Export refinance facility should be available only to 40 count and above.
• The mechanism of linkage of exchange rate with basket of currencies should be strengthened.

PRODUCT MIX:

• Exempt the duty on import of manmade fibers not produced in Pakistan.
  •Phase out the import duty on manmade fibers produced in Pakistan.
  •Product and market diversification should be promoted through quota incentives.

QUOTA:

• •Quota to be allocated on the basis of value not on performance alone.
• Ensure consistency in the quota policy. Policy once formulated in the best interest of the country should not be altered before the completion of its designated period.
• Provision should be made in the quota policy to facilitate the new exporters.

TECHNOLOGY:

• Imports of textile machinery older than ten years should be banned.
• Provide subsidized credit to textile manufacturers to upgrade their technology through a 'Technology Upgradation fund'. (TUF).
• Import of textile machinery for these sectors be allowed duty free.
• Top priority should be given to stitching industry that leads to highest value addition and employment generation.
• Provision of funds should be made through TUF.
• Existing exporters of garments and made ups should be provided financing through EGPF.
• Import of hand-held ultra low volume spraying equipment should be exempted from import duty and sales tax.
• Promote air jet weaving technology for cotton and blended fabrics.
• Upgrade smaller units of power looms (up to 50 looms) to auto looms and power loom units larger than 50 looms to air jet looms.
• Promote water jet technology for weaving of synthetic fabric.
• Develop special incentive package for promoting growth of processing industry in Pakistan.
• Provision of long-term funds for project financing should be made available through EGPF scheme and TUF.

HUMAN RESOURCES:

• Establish a separate training wing within proposed Textile Board.
• Provide licensing authority to the board for all new VTIs.
• Standardize courses, faculty and facilities in each subsection of textile. 'Introduce training courses of shorter duration.
• Initiate national textile curriculum development task. The exercise shall cover all sub sectors of the textile value chain.
• Evaluate possibility of hiring foreign consultants for short fixed duration to train the trainers.
• Institute for training the trainers.
• Utilization of EDF for equipping Vocational Training Institutions.
• Put manufacturers and exporters on the board of all Vocational Training Institutions and Government should discontinue funding after a specific grace period.

CUSTOMS DUTY & TAXATION (Investment Policy):

• 5% Customs duty on import of machinery which is not manufactured locally.
• Initial Depreciation Allowance @ 50% of machinery cost.

for more information visit : www.pakboi.gov.pk