KARACHI, Aug 29: The textile ancillary industry is seeking exemption from proposed gas infrastructure development cess because it will render them uncompetitive against regional countries where gas tariffs are already much lower.

These leaders apprehended that increase in gas cost would make their manufacturing costlier because gas tariff in Pakistan is 182 per cent higher than Bangladesh and minimum wages of labour are also 127 per cent higher.

Naqi Bari, vice chairman, Pakistan Bedwear Exporters Association (PBEA), said that the government is presently consulting industry over imposition of gas infrastructure development cess (GIDC) but has not taken textile ancillary industry into confidence. He regretted that a major segment of textile industry is not being consulted or taken on board on such an important issue which would directly have far-reaching implications on the cost of manufacturing.

Mr Bari even rejected a proposal of slashing proposed gas infrastructure development cess by 50 per cent from Rs100 to Rs50 per mmbtu and condemned that such important textile sectors, like towel, knitwear, apparel and clothing, bedwear, denim and processing, have not been taken on board on this issue.

Feroz Lari, chairman, Towel Manufacturers Association (TMA), said already exports of almost all value-added textile sectors have gone down between 14 and 22 per cent and if the government resorts to such measures which push up cost of doing business, it would not only bring exports further down but also result in closure of units.

Already there is a flight of capital owing to massive power and gas outages with deteriorating law and order situation and if the government resorts to such measures to enhance its revenue at the cost of industry, he feared it would result in unemployment.

Rauf Petal, chairman, Pakistan Hosiery Manufacturers Association (PHMA), said that whereas textile exports of India and Bangladesh have gone up by 16.33 and 5.35 per cent, respectively, our textile exports have gone down by 10.38 per cent.

Mr Petal said that gas tariff per cubic meter in Bangladesh is 5.25TK (6.45 cents) and Pakistan Rs17.28 (18.23 cents), exchange rate is 81.38TK and Rs94.78 to a dollar and minimum labour wage is $37 in Bangladesh and $84 in Pakistan.

Kamran Chandna, chairman, Pakistan Knitwear and Sweaters Exporters Association (Paksea), said that export-oriented and value-added textile industry had been on the receiving end for wrong government policies.

Javed Bilwani, chairman, Pakistan Apparel Forum (PAF), urged the government to exempt all the five zero rated export sectors from payment of gas infrastructure development cess so that the industry could not only secure their foreign markets, but also keep contributing towards national economy.