KARACHI, Jan 25: The crisis-ridden textile apparel industry seeks urgent government support in order to keep it afloat amid reports that a large number of small- and medium-size units have closed down rendering a large number of workers, including women belonging to low-income group, jobless, sources told Dawn on Friday.

The industry has listed a number of factors, which have eroded viability and export competitiveness of apparel products but the government is not taking the matter seriously, they added.

The sources recalled that at one stage former prime minister Shaukat Aziz had been quoted to have said: “Let the inefficient units be closed down because time of subsidies and captive markets had gone.”

However, the sources argued that India, China and Bangladesh were giving a number of direct and indirect subsidies to their exporters, which caused problem for Pakistani textile and clothing products to compete in the world market.

In a recent meeting with Minister of Textile Shahzada Alam Mannoo leaders of the apparel and spinning sectors apprised him about the issues with regard to high cost of doing business due to high utilities rates along with stiff competition from the rivals.

According to the sources, the minister was informed that if no immediate corrective measures were taken, it will be too late because soon there will be large scale closures, which would put many more out of job.

Rafiq H Godil, the chairman Pakistan Knitwear and Sweater Exporters Association (Paksea) in a statement has urged the government to enhance the amount of Research and Development (R&D) support from 6 per cent to 12 per cent and it should be extended beyond July 2008 for the entire apparel industry.

He further demanded that one per cent central excise duty levied since July 2007 should be included in the sales tax refund amount so that more financial space could be created for exporters.

There were many exporters, who could not clear or utilise their stocks by the deadline fixed by the FBR. The government should allow refund to such exporters in order to give them some financial relief.

Shehzad Salim, Pakistan Readymade Garments Manufacturers and Exporters Association chairman, also demanded extension of R&D beyond July 2008 and suggested that its rate should be doubled.

He further asked the government to remove import duty on all categories of cotton fabrics, accessories and felt that all procedures should be simplified.

There should be no bonds and DTRE scheme and in their place a simple customs forms should be allowed for declaration as evidence.

He was highly critical of the R & D being given on export of dyed fabrics and said that this tantamount to help our competitors in value-added apparel products to the extent of 3 per cent of the support.

If the same quantity of fabrics is sold in the domestic market it would help to keep prices low and would fetch more foreign exchange in its value added form, he added.