ISLAMABAD, Nov 27: The caretaker government is working on another package of subsidies and incentives for the ailing textile industry to revive country’s falling exports.

The sector had earlier been given a package of over Rs25 billion during the last two years.

“A textile strategy is in the pipeline to save the industry from crisis. I will finalise the strategy in a meeting with the secretaries of commerce and textile industry in the next couple of days,” said caretaker minister for commerce and textile industry Shahzada Alam Mannoo in response to a question while talking to a group of selected journalists here on Tuesday.

As a textile manufacturer by profession, the minister disclosed that he had already received feedback from textile tycoons after taking oath as minister, who are seeking an extensive package of support to kick up exports of the textile and clothing.In a two-month period, the minister clearly said he would hardly understand the working of the two ministries under the caretaker setup, but was determined to approve at least this package of subsidies for the sector he represents.

Asked about the impact of dolling out of billions of taxpayers money as subsidies to the sector on increasing exports, the minister conceded that subsidies given under the garb of research and development did not help increase exports by the sector.

“Forget about past subsidies given to the sector. We have to find out a solution for the revival of textile exports, which constitutes more than 65 per cent of total exports,” the minister asserted.

Supporting the idea of a separate ministry for textile sector, the minister blamed higher interest rates, gas prices and electricity charges, which have put industry in a crisis.

Regarding question about research and development in textile, the minister said people from textile industry want more and more concessions, and if due importance was not given to the industry, it would come to a close.

The government had already announced exemptions from sales tax for the sector, reduced rate of withholding tax on export proceeds, zero rate of sales tax on gas and electricity, subsidised loans and given cash subsidies.

The minister, however, said more support was needed for the sector as it was facing problems for the last couple of years.

Asked if that the new subsidy would be linked with increase in exports, the minister said textile exporters were not willing to make any commitment in this regard.

This he means to say that the textile sector want un-audited amount of taxpayers money.

He agreed with a questioner that some textile manufactures have diverted subsidies for establishing other profitable businesses. However, he said it was not the case with all manufactures.

When his attention was drawn to a report, which clearly stated that Pakistani exporters offer much lower unit price of their commodities even lesser than Bangladesh, but still it did not take hold of the market in EU and America, the minister avoided to reply to the question.

Answering a question, the minister said it was unlikely to achieve the export target of $19.2 billion target.

The minister stated currently there was an international crisis in the Industry. It is in the worst form all over the world, therefore, an ambitious strategy be designed to strengthen the industry.

After Ayub Khan, he said it was the present government that has put the economy on the right track. In 1999, the exports of the country were only $6 billion. But, today, we have crossed the figure of $17 billion in our exports.