Mr. Sultan Ahmed Chawla, President, Federation of Pakistan Chambers of Commerce and Industry has congratulated Mr. Rana Muhammad Farooq Saeed Khan, Federal Minister of Textile Industry for announcing a five Year Textile Policy 2009-14 providing incentives of export refinance at lower rates, relief on existing long-term loans, restructuring and reorganisation of the textile sector, drawback of local taxes, refund of past R&D claims and monetisation of PTA.

He hailed the decision of the Ministry of Textile Industry for including the proposals of FPCCIin the Textile Policy related to zero rating of exports, market access, drawback of local taxes, reducing the mark-up rates on export finance to promote exports, long term financing for value added exports, diversification of exports, textile R & D subsidy and establishment of export houses. He expressed that these incentives, support and strategies set-up in the policy would definitely address the challenges being faced by this sector on a sustainable basis and have met the long aspirations of the industry.

He remarked that it was for the first time that a comprehensive policy had being given to textile sector under the present economic circumstances, which has laid down a basis for sound growth of textiles and clothing sector of the country. He said it was the first serious attempt to sort out issues confronting different segments of textile industry.

He further said that the creation of different funds to support the textile industry at different levels is expected to go a long way in reviving the industry, which is presently passing through the most difficult time of its history.

Mr Chawla further appreciated that by providing level playing field by fixing the mark-up of export refinance at 5 per cent will definitely give cheaper financing to exporters of textiles and clothing and they would be in a position to compete in the foreign markets. In this way, Pakistan will enhance its exports significantly and Textile Sector will contribute the major share in exports, which was declining over the past few years. He said that the investment support given in the policy would go a long way in technological up-gradation of the textile industry.

However, he stressed the need for implementing the policy in letter and spirit to achieve the desired result and hoped that the Government would fulfill its commitments to make it success.