Wish list: shopping and retail therapy
March 2, 2010
Only in Pakistan
March 19, 2010

“Our edge was always the production capacity. We never based it on innovative product line. Strategically we need to bridge the gap- improving productivity and efficiencies, bringing the prices down, and producing a quality product on-time consistently. Basics of production are missing in all three industrial cities of Pakistan. Karachi has managed to do better than Lahore because they operate on lower overheads. Our production tracking is weak,” asserts Azhar Iqbal, CEO Leisure Textiles. By Fareeha Qayoom

By Fareeha Qayoom


akistan knitwear industry is only 1.5 billion of its total exports.

Dress shirt (5)
Photo by marklarson

Knitwear industry has been struggling for the past couple of years. Customers have been demanding lower prices, technical and design innovation, quality product on-time. Pakistani vendors unfortunately, have failed to deliver as an industry. Instead they have been more focused on expansion, increasing capacities instead of improving their management skills, timely execution of their commitments, quality, merchandising and sales areas.

why apparel industry down in lahore?

tkfr panel of experts

“Pakistan is ten years behind everyone else in the global marketplace. Even Bangladesh is more efficient and effective than us,” declares one buyer who wishes to keep his name out of the discussion. “The signs were always there. We could see it coming years ago. If we had based our operations on knitwear alone, we would have been out of our jobs pretty quickly. Instead, we started working in a new direction – and have managed to open up new avenues in the apparel sourcing of Pakistan. However, Pakistan again is nowhere on the global map in the woven business. Our fabric may be good according to most industry insiders, however, our poplins, and twills for woven shirts leave much to be desired. Taiwan, India and Bangladesh are leading the market again. Our woven bottom business has been a little better. However, again, we don’t have a lot of efficient and effective vendor resources. CBL has proved to be the only efficient resource for us from Pakistan,” he declares.

Muhammad Nasir, (merchandiser, Enrich Group Inc., based in the USA) doesn’t agree; “on the contrary, Pakistan right now is one of the leading suppliers of poplins & twill in the world market. We dominate yarn counts from 5 singles to 40 singles. Most of our competitors are using our piece goods!”

In the post quota scenario, experts were predicting that Pakistan will get the major chunk of business since it’s a cotton rich country – these reports were obviously based on the expert opinion of World Bank, IMF and other government and financial donor agencies. Muhammad Nasir, concurs with this opinion.

“According to experts, Pakistan, India and China will be the biggest gainers for WTO in the long run. Countries that do not have the raw materials, especially cotton will face serious problems going forward. In the short term, Bangladesh, Nepal, Sri Lanka, Gulf including Jordan, Africa will have business going to them. These are all assumptions at this point, only time will tell. Price structures may change for Fall 06 as buyers will have to place their programs other than in China. Garment prices should go up (even though prices are being determined by China right now, I met one customer yesterday who informed me the prices out of India are $1.50 per piece more than China), and big quantity orders will be split between China and a few other countries, even competition – probably the Middle East and Latin America, India and Pakistan. Turkey is providing cotton goods, and then they have a lot of stuff made in the Marianna Islands, the Philippines and Mexico. With the Middle East, it’s mostly the UAE where the fabric is brought in from other countries like India, Taiwan, and China and then only CMT is done in UAE. I agree the prices went down earlier this year because of China, now most of the hot categories are under quota, the prices are starting to rise again as I just explained.”

This unfortunately has proved to be a fallacy so far. Vendors are still waiting for the business that was sure to come; instead, business has been reduced drastically from last year. Shaharyar Hussain (Director, Angora Textiles) feels that “buyers have a wait and see attitude. Contrary to popular opinion, the knits business has not gone to China,” he asserts. “It has moved to India, Bangladesh & South Africa. Tommy Hilfiger and Gap are two such buyers who have moved to India. Chaps is sourcing out of South Africa. The reason is quite simple, better prices, less production hassles and no security issues.”

“Pakistan is an inefficient industry,” he continues. “Prices were good in the past so inefficiencies got covered. Cash flows were no problem. However, with the new trading scenario, duty and rebate advantages are available to certain countries. Take Bangladesh – it’s virtually impossible to compete with 15 percent cost advantage already built into their price. India is also offering better prices. Sri Lanka is duty free for Europe. There are two types of firms in Pakistan right now, the first category is made up of inefficient firms but they have orders, the second category of firms are inefficient and no longer have orders – they have a greater challenge ahead. We need to work on marketing, product innovation, and production efficiencies, HR training, and technical know-how to bring back the business and retaining it.” declares Shaharyar.

Azhar Iqbal (CEO, Leisure Textiles) also thinks the situation is unpredictable at this point. “Everybody misread the signals. Prices came down as well as the business quantum – China under safe guard quota may be positive for us, but it’s hard to say at this point. We are competing with India and Bangladesh too.”

Checking with a few buyers informally on this trend, one gets the impression that buyers are not very happy with the Lahore apparel vendors. One buyer, who represents the European market in Lahore, is deeply frustrated with the ignorance displayed, he comments, “Pakistani vendors are not very commercial or business oriented. They do not seem to understand the European market at all. The buyers have hundreds of suppliers. They do not need a supplier who doesn’t understand their business or cannot deliver what they are looking for when they are looking for it! They would rather go somewhere else. The

Europeans will give you a garment and just ask if you can make that at the price they want? If you can, the business is yours. You have to take care of the finer details yourself. They do not want to be bothered with the hassles of producing the garment. They have you for that. The runs may be shorter but they pay top dollar which actually translates into nine to fifteen dollars per unit and you end up making more money than you expect from a 1000 piece order. I do not understand why the factories in this part of the world are so unexposed, ignorant and unwilling to learn? With their attitude, business is sure to run away!”

Another buyer who is new to Pakistan also expressed his frustration, “All they seem to want is long runs! Why should I give them that business? They have not earned it. My Bangladesh suppliers are giving me hassle free production with low price and no attitude. They deserve to get this business more than the Lahore vendors,” he concludes.

That’s not all. The local buyers seem to be equally frustrated with the vendor attitude, “Most of the Lahore apparel vendors are first generation businessmen. Karachi is a little better since they are third generation. Why should I give them my business if they are not going to do any improvements in the management of their people and machines? If they are not going to concentrate on innovation, I do not have a lock on fresh ideas, I am looking for resources that can help me improve my product, make it efficiently at a lower price, adding differentiation to my product without transferring those costs to me and deliver it on-time. I have one Bangladesh vendor that has in-house designers – we picked a whole line from them! All we had to do was change the buttons! Why can’t Pakistan do that?”

Azfar Hassan, (CEO at Matrix Sourcing) is also one other buyer who is looking for product innovation from his vendors, he thinks the “vendors compromised their margins instead of improving efficiencies. The defect rate is high. Garments are practically made twice as they require a lot of re-work. Fabric yields have not improved. Vendors have not done what they should have to meet these challenges. There is virtually no emphasis on product innovation we need to concentrate on innovating creative fabrics and finishes. Vendors have built the infra-structure but they are not using it – the processes don’t mesh, overall there is no improvement in the quality area – we still have not improved garment presentation for example, in all these years – garments are still hard pressed. Nothing is changed. A lot of the vendors spent a lot of money on expansion, thinking in terms of economies of scale, but unfortunately, the basic business model was incorrect, the paradigm never shifted. The vendors were just wasting money. There is an absence of policy on training and budget. To run a good company, you need to have training programs in place. Even if there is a huge personnel turnover, that’s no reason to slash these programs. The vendors blew their money on machines instead of people. They spend more time fire fighting than doing basic management. What about your initiative? No effort is made to please the customer.”

Azhar Iqbal, (CEO at Leisure Textiles) also confirms vendors need to improve their management skills. “Our edge was always the production capacity. We never based it on innovative product line. Strategically we need to bridge the gap- improving productivity and efficiencies, bringing the prices down, and producing a quality product on-time consistently. Basics of production are missing in all three industrial cities of Pakistan. Karachi has managed to do better than Lahore because they operate on lower overheads. Our production tracking is weak.”

One problem is that vendors have literally no exposure to the market they are selling in. “There is lack of market focus,” declares Tariq Shabbir, (Marketing Manager at Combined Fabrics). “Marketing people don’t travel – there is literally no or limited exposure to the global market. Vendors with customer-driven focus have succeeded. If we look at India – they have their own labels. They project their industry abroad. They project their culture abroad. Our focus has been on indirect marketing only, which in practical terms means having limited exposure to the buyer’s liaison offices and agents. Now, direct marketing is required. We have learnt. We are competent. We can do fashion garments very easily. We have skilled labor. There is only lack of business orientation. India, China, Bangladesh and Sri Lanka are basically the same geographical region – the only basic difference between them and Pakistan is that Pakistani vendors have been working on short term goals – we have been trying to make easy money instead of building an industry.”

Unfortunately, due to various political reasons, customers have decreased or stopped coming to Pakistan for security reasons. The vendors have made no effort to build strong relationships with their customers over the years since quota used to give them an edge in the global market place. Shahrukh Chaudhry (Manager Knitwear Division at JC Penney Purchasing Corporation) confirms the above argument, he says, “Lahore vendors were inefficient to begin with. On top of it, they didn’t try to improve. Darwin’s law “survival of the fittest” seems to be playing out. Expansion in this climate seems impractical. All it has done is accelerate the rate of bankruptcy for the inefficient vendors. They could have survived for another six months if they had not gone into premature expansion. Vendors should have been working towards improving efficiencies and relationships with their current customers. Direct marketing and relationship building is the only way in the post quota scenario – vendors who focused on both areas have managed to sustain themselves even in this competitive environment. The strange thing is instead of concentrating on improving efficiencies, vendors thought in the post quota scenario business will grow and started building their capacities, the business in the meantime, quietly moved to India. I do not think China is a threat to Pakistan, India is. Buyers feel more comfortable with India, English is their second language. They also enjoy going to India from the tourist point of view, besides, in the business terms, they are offering better price points, better ser-vice and more variety in the product line. Why should not the buyers like India? The reason for Pakistani exports decline is very simple, lack of market intelligence with virtually no emphasis on marketing or trend forecasting,” affirms Shahrukh.

Adil Sher (brand manager, cK division at Linmark International), concurs with this opinion. “Pakistan is losing the race. Knitwear is down. Customers are clamoring for lower prices. We were not ready for this trend. Yarn dye is really hot. India unfortunately is better at yarn dye products. Things may start improving end of this year but at this point, its pure speculation, even the buyers are not sure about the post quota scenario. Woven apparel, on the other hand, is doing very well. Quota alone in category 347 used to cost us one dollar. That’s been slashed totally from the price. Our woven fabric has always been good. We have been exporting it to various parts of the globe. Now, we can make garments ourselves at a competitive price,” concludes Adil.

Shaharyar Hussain, (Director Angora Textiles) also feels woven apparel is the next new wave for Pakistani vendors. “Woven industry looks more promising. We can develop this area and compete globally. Our wash techniques need work though.”

Our leading woven apparel buyer doesn’t agree with this opinion, “Vendors who couldn’t deal with knitwear buyers effectively shouldn’t try their hand at making woven apparel. They are sure to lose money. You need to have a certain attitude to succeed in this business. You need to keep up with the trends and you need to initiate new trends. Sometimes, the only difference between a fifteen dollar jean and hundred and fifteen dollar jean is the finishing process.” •

This article was originally published in the print edition of “The Knit-Xtyle Fashion Review,” (Tkfr), issue 12, October 2005

Linmark International, VF and Angora Textiles shut their doors in Lahore soon after this article appeared in Print. With the exception of Levi’s, Li and Fung (formerly Colby International) and JC Penney Purchasing Corp. most multi-national buying offices closed their Lahore operations and moved to Karachi or out of the country entirely back in 2006. Editor

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Fareeha Qayoom
Fareeha Qayoom
Publisher and editor-in-chief of Tkfr.com and former print editions of The Knit-Xtyle Fashion Review (tkfr), a trade newsletter for the textile and apparel industry of Pakistan. In short, Publisher, editor, and a blogger. In addition, she has served as Managing Editor of MIT Technology Review Pakistan, print and web editions (2015-16). Total of 7 editions were published under her leadership by ITU, Punjab's first public technology university under the license of MIT Technology Review (USA). She has also managed Value Mag in the same capacity, a real estate and lifestyle magazine for Value TV - 2008-9. Published freelancer for The News on Sunday 1994-96. Fareeha has over 21 years of solid management experience – of managing brands (like Harley Davidson, Munsingwear, Chaps, Chaps Ralph Lauren etc.,), Retailers (like Target, Mervyns, Kohl's, Marks and Spencer etc.,), customers (VPs, Product Managers, Unit Managers, and Buyers), and products (apparel - woven, knits, men's, women's, children's, Print and online publishing units), projects, teams, and processes, information, content, and data, staff, vendors, and time. Versatile and adaptable with international exposure, communication and language skills (oral and written), and a consistent track record of achieving company targets and objectives, plus a MA in Political Science from Punjab University, a MSc in Economics from La Salle University, Louisiana, USA, and a BA in Economics from Kinnaird College for Women.


  1. Yarn industry on verge of collapse
    By Nasir Jamal
    Tuesday, 09 Mar, 2010
    LAHORE: Yarn producers on Monday warned against total collapse of the entire textile exports from the country during the last quarter of this fiscal year (April-June) unless the government revoked its controversial decision to restrict cotton yarn exports.


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  2. Producers of yarn to hold protest rallies
    By Nasir Jamal
    Tuesday, 16 Mar, 2010

    LAHORE: Yarn producers will march on streets of Lahore on Thursday to vent their anger over quantitative restrictions on export of cotton yarn.

    Similar, protest processions will also be organised in Karachi and Peshawar.

    The protest march by spinners would coincide with their one- day strike the same day. Strike and protest march have been announced to force the textile ministry to revoke its decision of decreasing yarn quota to 35,000 tons a month from 50,000 tons. An All-Pakistan Textile Mills Association (Aptma) announcement said on Monday mill owners would assemble at the Aptma zonal office and march towards the Governor’s House to express their resentment over what it called hostile attitude of the textile ministry.


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  3. China finds faults with designer clothes
    China has criticised a host of designer labels, including Hermes and Versace, for the poor quality of their clothes.
    By Malcolm Moore in Shanghai
    Published: 10:52AM GMT 16 Mar 2010

    Chinese inspectors in the South Eastern province of Zhejiang claimed to have found widespread problems with designer clothes that had been made outside of China.

    “We collected samples from most of the department stores and designer boutiques in the cities of Hangzhou, Ningbo and Taizhou,” said Shen Yan, an official at the Zhejiang Commerce bureau.


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  4. Textile minister critical of yarn producers
    By Kalbe Ali
    Wednesday, 17 Mar, 2010

    ISLAMABAD: Textile Minister Rana Mohammad Farooq Saeed Khan on Tuesday criticised yarn manufacturers for trying to take “undue advantage” of the yarn situation, and said the ministry could not be blackmailed by any sector.


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  5. Spinners planning closure of mills
    By Parvaiz Ishfaq Rana
    Wednesday, 17 Mar, 2010

    KARACHI: After exhausting the current raw cotton stocks, spinning mills throughout the country would start closing down within next one to two months as they are not going to import costly cotton to meet the estimated shortfall of around three million bales.


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  6. APTMA calls off strike after meeting Taseer
    Thursday, 18 Mar, 2010

    LAHORE: The All Pakistan Textile Mills Association called off their country-wide strike on Thursday after Punjab Governor Salman Taseer met with the officials in Lahore.

    APTMA termed their strike as a successful one after mills and factories across the country remained shut.


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  7. Spinners end strike after assurance of lifting curbs
    Dawn Report
    Friday, 19 Mar, 2010

    LAHORE: Spinners on Thursday called off plans for further protests against quantitative restrictions on yarn exports after Punjab Governor Salman Taseer assured them that the curbs on the yarn trade would be lifted in less than one week.


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  8. Textile exports continue upward trend in Feb
    By: Imran Ali Kundi | Published: March 20, 2010

    ISLAMABAD – After showing healthy growth in the month of January, textile sector once again registered a handsome growth of 21.67 percent in the February over the same period of the last year, Federal Bureau of Statistics reported on Friday.
    According to the figures issued by Federal Bureau of Statistics, textile’s exports were recorded at $795 million in February against $653 million in the same period of 2009.
    However it showed a slight growth of 4.18 percent in the first eight months (July-February) of the current financial year against the same period of the last year.


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  9. Cotton yarn export quota

    Apparel makers ask government not to interfere

    KARACHI: The value-added textile sector asked the government to refrain from interfering in the cotton yarn export quota and demanded to be taken on board before taking any fresh decision on it.

    “Any unilateral decision will be tantamount to devastation of the downstream textile industries providing livelihood to millions of people in the country,” Pakistan Apparel Forum (PAF) Chairman Javed Bilwani stated at a press conference on Saturday.

    Flanked by the leaders of 12 trade associations representing value-added textile sector, Bilwani said that PAF is the representative body of 16,000 value-added textile units of the country and employs around 18 million labour force.

    Whereas, spinners just represent 350 spinning mills and employ 280,000 workers in the country,” Bilwani pointed out.

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  10. SBP cuts mark-up on textile loans
    By Our Staff Reporter
    Tuesday, 23 Mar, 2010

    KARACHI: The State Bank has decided to provide cheaper money to the textile sector as being extended to exporters under Export Finance Scheme (EFS).

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  11. APTMA, value-added sector fail to resolve yarn-quota issue
    Wednesday, March 24, 2010
    By By Mansoor Ahmad
    LAHORE: Despite efforts by the minister of textiles and the Punjab governor, a marathon eight-hour-long meeting between representatives of the All Pakistan Textile Mills Association (ATMA) and the value-added sector failed to resolve the yarn export quota issue, sources said.

    Punjab Governor Salman Taseer, who last week had separate meetings with APTMA representatives and officials of the ministry of textiles, had invited value-added sector’s representatives for their input on the issue, the sources said.

    The governor informed the representatives of value-added textile sector that he was trying to broker a deal between the opposing interest groups on the instruction of President Asif Ali Zardari.

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  12. Rising NPLs of textile surprise State Bank
    By Shahid Iqbal
    Thursday, 01 Apr, 2010

    KARACHI: The State Bank of Pakistan has expressed its surprise over surge in infected loans of the textile sector especially in the wake of higher external demand and bumper cotton crop in the current season.

    It also showed concern that few corporate sector borrowers were in a position to shake up the banking industry as they were the real huge borrowers.

    “The rise in textile sector non-performing loans (NPLs) seems quite surprising given the recent increase in external demand coupled with better cotton crop,” said the SBP report on economy issued on Saturday.


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  13. SNGPL decides to suspend gas supply to industrial zones

    By Zeeshan Javaid

    ISLAMABAD: Sui Northern Gas Pipeline Company Limited (SNGPL) has decided to suspend supply of gas to industrial sector for a single day in a week, and in the first Phase, supply of gas to Lahore Zone 2 will be suspended today.

    While talking to Daily Times, SNGPL’s sources said due to crucial shortage of gas, the company has taken decision to stop the supply of gas to industrial sector in order to reduce gas load on domestic consumer.

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  14. ‘Govt. targets $ 10 billion of exports of textiles, garments’

    KARACHI, (SANA): Dr. Mirza Ikhtiar Baig, the Federal Advisor on Textile said over $ 10 billion of exports of textiles and garments were eyed by the government in the successive years.

    While addressing a press conference on the 3rd and closing day of 7th Textile Asia at Karachi Expo Centre, he said all the exhibitors were satisfied after negotiating sufficient business at the event adding a number of MoU’s were signed at Textile Asia.

    He observed that a total business of approximately $ 30 million was negotiated in the three days of the exhibition.

    He said that the event successfully ended and more than 212 foreign delegates and over 38,465 trade/corporate visitors till now were attracted adding further flow of visitors could been seen yet.

    Dr. Baig said that textile and garment were two ‘principal industries’ of Pakistan which contributed more than 67% to total export earnings, accounting for around 46% of total manufacturing and employing over 38% of the manufacturing labor force.

    He said that the government issued Technology Up-gradation Support’ Order 2010 in order to support investment for upgrading textiles machinery and technology adding it allocated Rs 40 billion towards various incentives allowed in the new Textile Policy 2009-14.

    On the occasion, Dr. Khurshid Nizam, the President Ecommerce Gateway said the Textile Asia created a firm reputation share in strengthening the Textile and Garment industry adding that 8th Textile Asia 2011 International Exhibition would be held on April 3-5, 2011.


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  15. Pakistan eyeing $ 10 bln Textile Exports
    ‘Pakistan Times’ Business & Commerce Desk

    KARACHI: Federal Advisor on Textile, Dr. Mirza Ikhtiar Baig said Monday that the governemnt was targeting over $ 10 billion of exports of textiles and garments made-ups in the successive years.

    He was addressing a press conference on the 3rd and closing day of 7th Textile Asia at Karachi Expo Centre. He said that all the exhibitors were returning home with satisfaction after negotiating sufficient business at the event.

    “It is heartening to learn that a number of MoU’s have been signed at Textile Asia. A total business of approximately $ 30 million (about Rs 2.5 billion) has been negotiated in these three days of the exhibition, he noted.


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  16. Pakistan Cotton Forum formed
    Sunday, April 11, 2010
    By By our correspondent
    LAHORE: The spinners, ginners and farmers announced the formation of Pakistan Cotton Forum at a press conference held at the office of All Pakistan Textile Mills Association with the objective of promoting textile industry value chain from cotton to its final products.

    Announcing the formation of the forum chairman APTMA (Punjab) Ejaz Gohar said the three main stakeholders in cotton have been pained to note that Pakistan was gradually losing its edge in productivity and quality of cotton to India. He said historically Pakistanís cotton was always considered far superior to Indian cotton varieties. However in past five years Indian cotton variety shanker fetched 15 per cent higher price than Pakistani cotton.

    He said Indian cotton production had increased 2.5 times in the last one decade while Pakistanís cotton productivity had remained stagnant.

    He said its ginning industry had not been facilitated by the government to develop it on modern lines. He said APTMA on its parts have not been able to pass on the vast research based data to the farmers that could help them increase productivity.

    He said APTMA, Farmers Associates of Pakistan and Pakistan Cotton Ginners Association would now share information and decimate the same among their members that could increase the quality and productivity of each member. They would jointly plead their issues that need resolution with the government.

    Representative of FAP Farooq Bajwa said that apart from cotton prices that would be dictated by its global price the three associations would cooperate with each other on all matters relating to cotton. He

    hoped that if equitable water distribution was ensured Pakistan could produce at least 20 million bales under the current conditions. With prudent use of BT cotton seed the production could move further up, he added. The PCGA chairman Mohammad Akram said the ginners would cooperate with both farmers and ginners to enhance quality and productivity of cotton.


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  17. Ban demanded on yarn export

    LAHORE: Pakistan Hosiery Manufacturers and Exporters Association (PHMEA) has demanded immediate ban on export of cotton yarn. “If it is not banned immediately we will go on strike from May 11 to press for our demand,” announced Association’s Chairman Mohammed Mushtaq Khan on Friday. He said export of knitwear garments and other value-added textile sub sectors are being adversely affected owing to shortage of yarn in local market. “If export of yarn is not stopped forthwith the whole textile sector will be closed down,” he added. staff report


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  18. Textile Value Added Units on Strike
    Wednesday, May 12, 2010 at 11:15 am under Business News

    Thousands of textile factories of value-added textile sector observed strike on Tuesday and demanded complete ban on export of yarn and cotton from the country reported by A Pakistan News.


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  19. Spinning sector considering shifting business to Bangladesh

    By Razi Syed

    KARACHI: Leading units of spinning sector and exporters of yarn are considering shifting their businesses to Bangladesh. “After last nail in the coffin by imposing 15 percent regulatory duty on yarn exports, the spinning and yarn exporter sector have no choice other than to go to quota free country”, export committee member of Pakistan Yarn Merchants Association (PYMA), Khalid Rafi said on Saturday.

    The yarn sector will have to bear an additional tax burden of more than Rs 20 billion after imposition of 15 percent regulatory duty on yarn export, Rafi maintained.


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  20. Value-added textile sector for 30pc RD on yarn export
    Published: May 16, 2010

    FAISALABAD – Value-Added Textile Forum have announced to stage protest rallies and demonstrations on every Tuesday and Wednesday to stress their demand for imposition of Regulatory Duty of 30pc on export of cotton yarn from the country.
    In a meeting of the Forum held here on Saturday the imposition of 15pc regulatory duty on export of cotton yarn by the Government was considered to be insufficient and half-hearted measure.


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  21. Aptma to extend strike if duty not waived
    By Nasir Jamal
    Wednesday, 19 May, 2010

    LAHORE: Spinners shut down their factories and organised large workers’ rallies on Tuesday as part of their two-day strike call to protest against imposition of 15 per cent regulatory duty on yarn exports.

    The majority of yarn producers are mounting pressure on Aptma leadership to announce a complete shutdown of yarn production for an indefinite period to force the government to rescind its decision to curb free trade mechanism.
    Aptma-Punjab chairman Gohar Ejaz has been authorised by the spinners to extend the strike for an indefinite period if the government does not heed to their demand for withdrawal of the duty by Wednesday (today).


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  22. Cotton market remains lacklustre
    Wednesday, May 19, 2010
    By By our correspondent
    KARACHI: The local cotton market on Tuesday witnessed lacklustre trading as mill-owners remained on the sidelines due to higher prices and short supply, brokers said.

    Spot rate of the Karachi Cotton Exchange fell by Rs100 to Rs6,500 per maund for average quality lint, they said.

    The spinners strike also badly affected the trading at the cotton market, they said. Spinners expressed reservations over the newly-imposed 15 regulatory duty over yarn exports.

    However, the value-added sector representatives said under the garb of free trade and marketing, traders are exporting yarn to their regional rivals, while strangulating the home industry and strengthening their competitors. All over the world, smooth supply of essential raw material at cheaper rates for domestic industry is ensured in order to sustain the home industry, they said.

    New York cotton futures recovered by 0.48 and 0.41 cents at 81.20 and 77.21 cents per pound for the July and October settlements.


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  23. APTMA calls off strike PDF Print E-mail

    ISLAMABAD, May 20 (APP): All Pakistan Textile Mills Association (APTMA) has calls off its indefinite strike of the spinning mills after meeting with the Federal Minister for Textile Industry Rana Muhammad Farooq Saeed Khan. During the meeting with the Federal Minister for Textile Industries, APTMA representatives apprised the Minister of their grievances and problems being faced by the spinning sector after imposition of 15% export duty on cotton yarn.

    Minister for Textile Industry, acknowledged the problems faced by the Textile Industry and said that he is fully aware of the situation, says a statement issued by the Ministry of Textile Industry.

    The Minister said that Textile Industries growth is possible only if all the sectors from Cotton Growers, Spinners, Ginners, to Value Added sector cooperate with each other.

    He advised the APTMA representative to solve the issue in amicable and brotherly manner with all other sectors so that a culture of co-existence may prevail in the industry and every one can get its due benefit.

    APTMA representatives agreed with the Minister’s proposal and announced to call off the indefinite strike saying that strikes not only cause loses to the industry but the economy of the country as a whole suffers due to closure of mills and unemployment of the labour.

    The next session of the meeting will be held on the Friday, May 21 (Friday).

    On the request of the Ex-vice Chairman Shaikh Muhammad Akbar, meeting was held with the Minister for Textile Industry, Rana M. Farooq Saeed Khan. APTMA delegate lead by Vice Chairman, Gohar Ijaz included Shahzad Saleem CEO Nishat Group, Mr. Umer Virk, Hira Textile, M.A. Khurram, Akbar Shaikh, Akhtar Ali Ch, Sitara Textile Mills, S.M. Tanveer, Din Textile Mills, Naveed Gulzar and Javaid Iqbal.


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  24. Aptma, Textile Ministry still at odds
    By Express

    May 22, 2010

    KARACHI: Discontentment persists after a fruitless meeting between All Pakistan Textile Mills officials and the Ministry of Textile where parties fail to see eye to eye on the issue of a 15 per cent duty on yarn exports.

    “Nothing is going on,” said Gohar Ejaz, Chairman APTMA Punjab informed The Express Tribune after attending the Friday meeting expressing his frustration at the lack of that there has been no progress the group has been able to made. The APTMA officials had little hopes before going for the Friday meeting owing to the nature of talks that ministry of textile and they had held on Wednesday.

    Anwar Ahmed Tata, Chairman APTMA said that that he feels hopeless as far the government is concerned. Tata, who was in Karachi when the meeting was going on in Islamabad, said “Nothing will happen as the government has made up its mind to destroy the spinning industry of the country.”

    Published in the Express Tribune, May 22nd, 2010.


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  25. Leather sector seeks relief from VAT
    By Our Staff Reporter
    Wednesday, 26 May, 2010
    LAHORE: The Pakistan Tanners Association and the Lahore Hide Market on Tuesday urged the government not to impose VAT on the leather sector.

    In a statement issued here after a meeting of the association, North Zone President Sheikh Mohammad Naim said 15 per cent tax at each stage of value-addition would raise working capital requirement, and thus small and medium exporters would be out of business.

    He said the tax would also increase cost of doing business up to 70 per cent, and ruin the entire leather industry.

    It would affect competitiveness of the highly sensitive exportable commodity, he said.


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  26. Pakistan’s Cotton Yarn Makers Ask Government to End Export Levy

    By Khurrum Anis

    May 26 (Bloomberg) — Cotton mills in Pakistan, the world’s biggest yarn producer, asked the government to end a levy on exports, which they say threatens the closure of hundreds of units because of lost sales.

    A ministerial committee will discuss the proposal by mills to abolish the 15 percent regulatory duty in Islamabad tomorrow, said Yaseen Siddique, chairman of the southern region of the All Pakistan Textile Mills Association. The meeting comes after the trade group met Prime Minister Syed Yousuf Raza Gilani and Finance Adviser Abdul Hafeez Shaikh since last week.

    The tax may undermine the government’s plans to achieve $25 billion of textile exports by 2014. Cotton yarn exports rose 32 percent to $1.2 billion in the 10 months ended April 30, according to the Federal Bureau of Statistics.


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  27. VAT Regime to break backbone of Nation’s Economy – Textile Sector

    ISLAMABAD: Value Added Tax (VAT) regime will certainly break the backbone of our nation’s economy – the textile sector, M. Jawed Bilwani, Chairman, Coordinator, Value Added Textile Forum.

    He said that when the Sales Tax Regime started in 1996, although the Textile Sector was zero rated, still Sales Tax was paid and then refunded which not only involved cumbersome procedure, extra expenses on Sales Tax staff but also huge liquidity of the textile industry was blocked causing immense hardship. Later we convinced the Government on the above problems that what was the sense and practicality of taking Sales Tax and refunding the same back. We also highlighted to the Government that such regime also encouraged large number of fake firms to get registered and such registered firms made “Flying Invoices” and made money which was a huge loss to the Government. At that time the Government was convinced and the entire textile chain and other four sectors was truly zero rated.


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  28. Spinners seek ‘conditional’ yarn export
    By Nasir Jamal
    Friday, 04 Jun, 2010

    LAHORE: Renewing their call for the removal of 15 per cent regulatory duty on yarn exports, spinners have urged the textile ministry to allow duty free export of consignments for which letters of credit were opened or advance payment received before May 13.

    In a letter sent to Textile Minister Rana Farooq Saeed the spinners referred to the meetings with him in Karachi on May 30-31 for the resolution of the dispute on export duty and said that the export of cotton and yarn under the DTRE and manufacturing bonds should not be subjected to any duty.


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  29. Textile exports stood at $9.324bn
    Updated at: 1810 PST, Wednesday, June 23, 2010

    KARACHI: The Federal Bureau of Statistics (FBS) said that textile exports shared over 50 percent of the total exports during the first eleven months of the current fiscal year.

    Textile exports stood at $9.324 billion and contributed 53 percent in the total exports of $17.6 billion during July-May 2009/10.


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