Knitwear makers criticise govt policies

LAHORE: Pakistan Hosiery Manufacturers Association (PHMA) on Thursday criticised the policies of the government, saying they have crippled the knitwear sector.
Chairman PHMA Usman Jawwad, in a briefing, blamed the government for its surly policies, which enabled states like Bangladesh and Vietnam to edge out Pakistan.
He said there are exporters that have not received refunds on dozens of export consignments spread over two years, adding that no one can increase the exports when his liquidity is extracted from him.
He said the sector has been refusing orders because of uncertain power and energy scenario in the country.
Gas is sparsely available in Punjab depriving the industry of producing power at a lower cost, he said, adding that the additional tax on furnace oil has increased the cost of alternate fuel source as well.
Former chairman PHMA Shahzad Azam Khan said export of knitted garments witnessed a growing trend in the past many years but failure to match the support by the governments of India and Bangladesh provided to their knitwear sectors has resulted in closure of numerous smaller units.
He said the government, after numerous promises, has not even installed a water treatment plant for small knitwear units.
Knitwear is a labour intensive industry with around 1.5 million workers and about 1200 organized units spread over Karachi, Lahore, Faisalabad and Sialkot, however, the industry is operating with the same capacity as it was 15 years ago.
He advised the government to comply with the EU convention to ensure continuity of GSP Plus status.
Former Pakistan Hosiery Manufacturers Association chairman north Zone Adil Butt hoped that the new policy would not be shelved like the previous 2009-13 policy.
He added that the 10 percent export rate to qualify for special rebates should be decreased to motivate small exporters.