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Karachi—Pakistan enjoys huge advantage over India in cotton textiles still All Pakistan Textile Mills association -the premier textile trade body of the country has conveyed its serious reservation regarding Non- Discriminatory Market Access (NDMA) to India under current scenario.
According to reports Pakistan is ready to accord non discriminatory market access to India by the second week of February have created ripples in the manufacturing circles of Pakistan, though the Govt has denied the same but has not refuted eventually doing so in nearest future. The APTMA and particularly some large textile tycoons have up till now been favoring opening of trade with our next door neighbor. However in a letter written to the Commerce Secretary even APTMA has shown reservation on this issue.
“Look at the hunger of thousands of Indians that visit Lahore through Wagah” said one textile entrepreneur adding that their first destinations in Lahore are the fabric markets selling Pakistani cotton lawn. He said even the trade delegations that visit Pakistan request the organizers to arrange a visit to Anarkli so that they could buy the Pakistani lawn for their wives and daughters.
The reservations spelt out by APTMA chairman Muhammad Yasin Sadik in his letter relate both to the current economic situation in Pakistan and the barriers erected by the Indians on import of textiles in their country. Experts say that it is because of these barriers that Pakistani textiles have not been able to make inroads in the Indian markets.
He said Pakistani exporters have been dismayed by the tariff and non tariff trade barriers erected by India. They have now opened their outlets in Dubai, London, New York, Toronto and many other countries where the Indian immigrants live in large numbers, he added. He said access to Indian immigrants however is no replica for access to over one billion Indians living in India –fifty percent of whom are ladies.
The APTMA in its letter has first drawn the attention of the government towards internal situation where energy shortages and cost has cut 20 percent of the production. Moreover it pointed out that electricity cost in Pakistan is 15 cents per unit compared with only 9 cents in India. The interest rates in Pakistan are 20 percent higher than India increasing the financial cost of the industry.
Foreign buyers visit India freely but are reluctant to visit Pakistan because of law and order situation. Lastly the letter adds that India is net exporter of cotton after fulfilling its domestic needs while cotton production in Pakistan always remain short forcing the industry to resort to import of this vital input.
Regarding the problems faced by Pakistani exporters in India the letter points out that India has very effective system of tariff and non-tariff barriers to support their industry and barriers include counter veiling duties, advelorem duties and para tariffs. It also points out that India has very liberal regime of rebates and subsidies. It for example provides 3 percent rebate on export of yarn and fabric.
This further reduces the cost of Indian textiles. The letter points out that besides varies subsidies offered by the Indian states the central government in India provides 2 percent rebate on interest to its Industries for upgradation of technology.
The APTMA chairman warned at if free market access is granted to India without removing the reservations expressed in his letter it would destroy Pakistan’s textile industry.
Pakistan enjoys huge advantage over India in cotton textiles
According to reports Pakistan is ready to accord non discriminatory market access to India by the second week of February have created ripples in the manufacturing circles of Pakistan, though the Govt has denied the same but has not refuted eventually doing so in nearest future. The APTMA and particularly some large textile tycoons have up till now been favoring opening of trade with our next door neighbor. However in a letter written to the Commerce Secretary even APTMA has shown reservation on this issue.
“Look at the hunger of thousands of Indians that visit Lahore through Wagah” said one textile entrepreneur adding that their first destinations in Lahore are the fabric markets selling Pakistani cotton lawn. He said even the trade delegations that visit Pakistan request the organizers to arrange a visit to Anarkli so that they could buy the Pakistani lawn for their wives and daughters.
The reservations spelt out by APTMA chairman Muhammad Yasin Sadik in his letter relate both to the current economic situation in Pakistan and the barriers erected by the Indians on import of textiles in their country. Experts say that it is because of these barriers that Pakistani textiles have not been able to make inroads in the Indian markets.
He said Pakistani exporters have been dismayed by the tariff and non tariff trade barriers erected by India. They have now opened their outlets in Dubai, London, New York, Toronto and many other countries where the Indian immigrants live in large numbers, he added. He said access to Indian immigrants however is no replica for access to over one billion Indians living in India –fifty percent of whom are ladies.
The APTMA in its letter has first drawn the attention of the government towards internal situation where energy shortages and cost has cut 20 percent of the production. Moreover it pointed out that electricity cost in Pakistan is 15 cents per unit compared with only 9 cents in India. The interest rates in Pakistan are 20 percent higher than India increasing the financial cost of the industry.
Foreign buyers visit India freely but are reluctant to visit Pakistan because of law and order situation. Lastly the letter adds that India is net exporter of cotton after fulfilling its domestic needs while cotton production in Pakistan always remain short forcing the industry to resort to import of this vital input.
Regarding the problems faced by Pakistani exporters in India the letter points out that India has very effective system of tariff and non-tariff barriers to support their industry and barriers include counter veiling duties, advelorem duties and para tariffs. It also points out that India has very liberal regime of rebates and subsidies. It for example provides 3 percent rebate on export of yarn and fabric.
This further reduces the cost of Indian textiles. The letter points out that besides varies subsidies offered by the Indian states the central government in India provides 2 percent rebate on interest to its Industries for upgradation of technology.
The APTMA chairman warned at if free market access is granted to India without removing the reservations expressed in his letter it would destroy Pakistan’s textile industry.
Pakistan enjoys huge advantage over India in cotton textiles
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