The Ministry of Textile Industry has demanded Rs 30 billion in budget 2012-13 for taking different initiatives that were integral part of the textile policy (2009-14), informed sources revealed to Business Recorder.
Sources said the Ministry had demanded Rs 35 billion in the budget 2011-12, but the government released merely Rs 7.5 billion due to which initiatives announced in the textile policy could not be implemented.
Now again the Ministry has demanded Rs 30 billion for different schemes under the textile policy including Textile Investment Support fund, drawback of local taxes, refund of past Research and Development (RandD) claims, mark-up rates and magnetisation of Purified Terephthalic Acid, revealed sources, adding that government provided no subsidy to the textile industry in the last budget.
The government had announced Rs 42 billion for textile export promotion under the textile policy in the budget 2010-11 of which 67 percent was to be spent on textile and clothing industry for consolidation and value addition of the sector.
However, the Ministry received only Rs 7.75 billion in 2010-11.
Similarly, in 2009-10, the year when textile policy was announced, the government had earmarked Rs 40 billion for different policy initiatives.
However, the Ministry received Rs 9.75 billion in 2009-10.
During the current year, the Ministry received Rs 7.5 billion against its demand of Rs 35 billion, sources maintained.
Officials were of the view that under these circumstances, it is unlikely that textile policy would achieve the desired results.
Due to meagre release against the promised amount by the government, most of the initiatives announced in the textile policy have not been implemented, sources maintained.