950809

Exportable surplus

of poly-woven sacks

now possible

AMANULLAH BASHAR

KARACHI: The polypropylene woven sack industry which has made the country self-sufficient with a production of 300 million poly woven sacks per annum, is now in a position to add another non-traditional item to country's export list, provided a little attention is given by the government to it.

Talking to newsmen here on Wednesday, Akram Sultan, Chairman, Pakistan Polypropylene Woven Sack Manufacturing Association, his fellow industrialists Baber Ali Khan and Mohammad Ashraf Khan said that at present the total need of raw material, that is polypropylene tape yarn grade, is around 30,000 tons, of which 21,000 tons is imported by the industry itself while the remaining 9,000 tons was so far imported by the traders for supply to the smaller manufacturing units. Now these small units together have also decided to import the remaining 9,000 tons to avail of the concession allowed by the ministry for the polypropylene sacks manufacturers.

They said that the industry is not against traders or any other quarter but naturally would like to avail of the facility allowed by the government for the manufacturers, therefore, it feels, this concession should not hurt any body, and in any case as far as the traders were concerned, Akram Sultan suggested, instead of trading in the raw material they should enter the trade of finished sacks.

Appreciating the government step in issuing SRO on concessions at an appropriate time, Akram said that so far the industry had suffered huge losses because of sick condition and had reached the brink of total collapse.

Giving an outline of the industry, he said it provides 15,000 jobs, contributes a respectable Rs.1.5 billion in direct and indirect taxes, including 15 percent sales tax on polypropylene bags, and has an investment of Rs.3 billion in manufacturing facilities.

These poly woven sacks are mainly being used for packing of agriculture products like fertilizers, grains, feeds, textile products etc, and have an ample scope for other industrial products like cement or sugar.

He brushed aside the claim of traders that they are carrying stocks of billions of rupee as bonded goods, describing it as a bogus claim. According to Akram, it is not only beyond their capabilities but as a matter of fact by raising a hue and cry over the concessions to the industry, they are making efforts to keep doors open to smuggling through Afghan transit trade or border trade just to destroy the position achieved by the industry.

He alleged that the problem of the Karachi Kiryana Merchant Group which is opposing the industry is not the reduction of import duty but actually they want to safeguard the interest of five major traders who manipulate the plastic trade.