The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) recently endorsed the demand by advisor to the Prime Minister on commerce Abdul Razak Dawood seeking a zero-rating regime for the entire textile chain in the Textile and Apparel Policy 2020-25, saying the apparel sector is eagerly awaiting its approval by the Economic Coordination Committee (ECC).
PRGMEA Central Chairman Sohail A. Sheikh and chief coordinator Ijaz Khokhar, in a joint statement, observed that restoration of zero-rating status of the textile sector is vital to maintain export momentum, as the sector is working at full capacity at present to meet the high demand of orders.
It is absolutely essential to sustain this momentum, as economic activities are largely restored to pre- COVID levels in the first quarter of current fiscal, Shiekh was quoted as saying.
He said the uptrend indicated a promising growth ahead in all major sectors, especially the value-added apparel industry, but the risk of record high yarn prices amidst its severe shortage has continuously been posing a major threat to export growth.
Apart from announcing five-year textile policy, the government will have to introduce some soft package for short-term period for the apparel industry to sustain the present growth as yarn prices has increased by 30-40 per cent while availability is also very critical, he observed.