20000204

Govt studying value-added

products' competitiveness

in international markets

MUZAFFAR QURESHI

KARACHI: The Ministry of Industries and Production is carrying out a study to assess the competitiveness of Pakistan's textile value-added products in order to accord concessions to help boost the dwindling textile exports.

The study is being conducted by the Textile Sectoral Group constituted to formulate a long term policy called 'Textile Vision-2005'. The policy will be aimed at to preparing the value-added textile sector for 2005 when under WTO all textile quotas will be abolished.

The ministry has asked the Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) to furnish details of the cost of production of various manufacturing processes of garments.

The costing data sought by the ministry includes raw materials, labour, auxiliary cost of sub-contracting process, utilities, and fuel. Among indirect costs sought are expenses on sales and marketing, transportation/freight and bank's interest. The data to be furnished also includes cost of repairs and maintenance, packaging, depreciation, testing and expenses on purchasing textile quotas.

The study will also take into account costs incurred on administration, indirect labour benefits, electricity, telephones, insurance, rent and building depreciation. The information to be provided also relates to amount of taxes paid, dividends, cash conversion cycle and details of inventories.

Javed Chinoy, Chairman, Prgmea Central, will represent Prgmea in the textile sub-sector set up to formulate a long term textile policy. The other two nominees of Prgmea are Naim Suria and Asif Abdulla.

Chinoy described the cost excercise a fulfillment of the long outstanding demand of the textile value-added exporters whose products were fast losing the market due to the cheaper products offered by India and Bangladesh. He said that the exercise and subsequent steps taken to improve competitiveness of textile products would bring national textile products back into the foray of exports.