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Work visa issuance now from board of investment to facilitate compnies based on Sindh

 
 
 
 

Outcome of activities intended by the association during the upcoming three years period

 
 
 
 

Outcome of activities intended by the association during the upcoming three years period

 
 
 
 
About PDMEA

 

PDMEA is the Association of manufacturers and exporters of denim fabric representing denim mills throughout Pakistan.

Registered Office: Room No. 208, 2nd floor, Clifton Centre, Clifton, Karachi. Tel. 5863016, 5874195, Fax: 5863933

Lahore Zonal Office: 3.5 KM, Off Bhoptian Chowk, Raiwind Road, Lahore. Tel. 042-5340057-60, Fax: 042-5320061

Faisalabad: Rafhan Mills Road, Faisalabad, Tel. 041-8717419, 8730084, Fax: 041-8711318

DENIM MARKET OF PAKISTAN:

  1. Supply of denim fabric from Pakistan is a specialized textile product with its diversified increasing use in jeans, fancy & fashion apparels, curtain, bed sheets, canvas, uniforms, long vies, fire resistance apparels FOR ALL SEASON ALL AGES.

  2. Denim fabric has recently been developed and over the last few years there is a rapid growth and expansion in its use and production capacity in Pakistan.

  3. There is constant increase in the export of denim fabric. The projected amount for export for 2007 is US$:100 million = Rs.6100 million and Pakistan has emerged as denim hub in the South East Asia. Our major exporting countries are Turkey, Bangladesh, Sri Lanka, Jordan, Kenya, Morocco, Tunisia, Syria Latin American countries etc. etc.

  4. There has been a phenomenal increase in the production capacity of denim mills in Pakistan and at present there are about ten denim mills are in operation producing denim fabric catering to the needs of local garments industry as well as earning valuable foreign exchange for the country. Also providing substantial job opportunities and generating revenues for the national exchequer.

  5. Denim has been treated as a different textile product and was given a different quota category under the pre-quota regime. There has been a minimum investment of Rs. 1 billion on a small to medium size denim mill. Presently there are more than 40 denim mills operating in Pakistan with local and foreign investment of about Rs.40 billion.

  6. Pakistan Denim Manufacturers & Exporters Association is represented at the following:
    - Chairman Standing Committee Federation of Pakistan Chamber of Commerce & Industry on Direct Taxes for 2007.
    - Senior Vice Chairman Standing Committee FPCCI on Credit, Banking and Finance.
    - Credit Advisory Committee of State Bank of Pakistan.
    - National Textile Strategic Committee for Zero Rating of the Exports, Ministry of Textile Government of Pakistan.
    - Task Force on Reducing Cost of Doing Business in Pakistan constituted by the Ministry of Textile industry.
    - Convener National Budget 2007 to formulate proposals and Recommendations for the National Budget and Trade  
      Policy 2007-08.

  7. Denim sector's performance:
    - Foreign and local investment in the denim sector in Pakistan (Rs. 40 billion). The export of denim fabric is summarized as under:-

COTTON DENIM FABRICS IN PAKISTAN

Per annum Production of Denim Fabrics 584 Million Meters
Share in total cotton cloth production 62.80%
Share in Total Government Revenue Pak Rs. 144,995,600
(0.024)

EXPORT (in Pak Rs.)

2006-07 (Projected)  14,906,760,000
2005-06 11,245,344,000
2004-05 10,035,862,320
 
  1. Contribution in GDP by Payment to the national exchequer in terms with custom duty, sales tax and withholding tax on import of raw material used for manufacturing denim fabric.

  2. Ministry of Commerce has issued their licence to PDMEA in the mid 2006 on its merit after reviewing all the facts stated and verification of the data provided that the sector needs small trade body to represent this important sector contributing significantly to the national economy in terms with job creation, revenue generation, exports and suppliers of the quality raw material to the local garments industry for value addition creating substantial local and foreign investment in the country.

  3. Authorized body by the Ministry of Textile Industry government of Pakistan to verify the R&D claims/payments of the exporters of denim fabric to State Bank of Pakistan.

Remarkable Achievement:

Pakistan has become denim hub in the region in less than a decade and is considered as one of the leading supplier of quality denim fabric to the world's known brands for the woven garments. Our fancy denim is second to none. The denim industry is contributing substantially towards exports creating job opportunities and has invested more than Rs. 30 billion in the denim sector. The investment in a medium size denim mill is about Rs.1 billion.

Our exports have reached US$:750 million producing 584 million meters denim fabric annually and 100% catering to the needs of the local apparel industry which is a great achievement on the part of our denim industry. Our growth could have been more had our cost of doing business not increased manifold in energy, wages, mark up, logistic and procure of raw material at international prices.

THREE YEAR PLAN OF ACTIVITIES

The Pakistan Denim Manufacturers & Exporters Association was incorporated as a company limited by guarantee not having share capital under certificate of incorporation bearing No. 12758/20060507 issued at Karachi on 31st May, 2006 under section 42 of the Companies Ordinance, 1984. The Association has been granted licence No. 156 under the Trade Organizations Ordinance, 1961 by the Ministry of Commerce, Government of Pakistan. The association has also obtained a fresh licence No. 049 under the Trade Organizations Ordinance, 2007 on July 08, 2008. The registered office of the Association is situated at 208-A, 2nd Floor, Clifton Centre, Clifton, Karachi. The Association is engaged in the encouragement of friendly feelings and unanimity amongst all the denim fabric manufacturing units.

Pakistan has become Denim Hub in the region in less than a decade and is considered as one of the leading suppliers of quality denim fabric to the world's known brands for the garments. The fancy denim in our country is second to none. The denim industry is contributing substantially towards exports, creating job opportunities and has invested about Rs. 30 billion in the denim sector. A medium size denim mill costs about Rs.1 billion. Exports of denim fabric and garments have reached $750 million per annum during the last 10 years, a commendable performance of denim sector of Pakistan.

The three years future plan and activities of the Association are summarized as under:-

SHORT TERM:

  1. The Association has taken measures to take a delegation of denim / textile exporters to European Union for duty free market access of our country's textile products including denim fabric and garments in lines with Ministry of Textile's efforts to get duty free market access from EU. In this regard, the Association has received positive response from Germany, France, Italy, Turkey, UK and Netherlands.

  2. To take up matter with the Ministry of Textile Industry to establish accredited testing laboratories in Karachi, Lahore and Faisalabad including Okotex certification facility for testing of denim fabric.

  3. Negotiations are underway with the Turkish counterpart for transfer of technology of denim technology facility for value addition in the denim garment sector.

  4. To verify the FOB value of the shipments under R&D Schemes to avoid any mis-declaration and over-invoicing by the denim exporters to claim R&D benefits.

  5. To verify R&D claims / payments to avoid duplication of any claims and to verify claims of the genuine exporters for permissible destinations only.

  6. To negotiate with the organizer of the International Trade Fairs to allocate good location at good rate to the Members of PDMEA for a better presentation display of their products at the international exhibitions

  7. Formulation of proposal and recommendation for the National Budget and Trade Policy 2008-09 through Ministry of Commerce, Ministry of Textile and Central Board of Revenue.

  8. To share information with the members regarding defaulters/buyers and suppliers with particular emphasis on some foreign buyers who has black mailing practice to get their high discount for the release of goods shipped to them.

  9. To share information among the members to jointly negotiate purchase of raw materials like:
    a. Hydro Sulphide
    b. Indigo and Dyes
    c. Lycra and Spandex
    d. Better freight from shipping companies

  10. To send consolidated R&D Support Claims Monthly report to Ministry of Textile and State Bank of Pakistan as required under SRO 803(I)/2006.

  11. To attend queries on Customs, State Bank of Pakistan, Ministry of Textile and other concerned organizations regarding R&D claims of PDMEA.

LONG TERM:
  1. Establishment of Research & Development Cell.
     
  2. To bench mark their product cost and the impact of incentive of denim fabric produced in Pakistan vis-à-vis competing countries. Working with M/s. Gherzi regarding conversion of cost of denim fabric.
     
  3. Skill development / training programme and in-house and foreign training of the technical staff particularly in dying process in collaboration with suppliers of the denim plant and machinery.
     
  4. To Study the Textile Perspective Plan of denim sector for Technology Up-gradation, recommended by Ministry of Textile Industry, Government of Pakistan. The world renowned textile consultant M/s. Gherzi International would conduct the study of denim sector to find out the shortcoming and recommend suggestion to improve the functioning of units vis-à-vis international standard with particularly focus to enhance efficiency, quality control, optimum production, marketing net-work, labour and machine productivity, all round efficiency, waste percentage, human resource output.

    The following mills/units have been nominated by PDMEA for the said study by Gherzi International:

    M/s. Artistic Milliners Ltd.,
    M/s. Siddiqsons Denim Mills Ltd.,
    M/s. Pak Denim Ltd.,
    M/s. Azgard Nine Ltd.,
    M/s. Mekotex
    M/s. Kassim Textile Mills Ltd.,
    M/s. Naveena Export Ltd.,
     
  5. To include jeans trousers / bottom for duty free export to USA from ROZs in Pakistan to be announced by USA government shortly.
     
  6. Composition of delegations for visit to foreign countries to introduce our products.
     
  7. To establish Pakistan as the denim hub in South East Asia as the reliable source and suppliers of world class quality denim fabric to the buyers.
OVERALL SHORT TERM & LONG TERM PLAN
  1. To take up the matter with Ministry of Textile and Ministry of Finance to provide us level field by reducing mark up, ensure uninterrupted supply of gas and power, to continue R&D support, to improve supply chain to ensure good quality contaminated free cotton at competitive rates to the denim industry and to take up necessary measures for reducing cost of doing business in the denim sector which will not only increase the exports but would create new job opportunities through industrialization which has presently become standstill.
     

  2. Denim industry is presently exporting denim fabric and garments worth $750 millions, which we intend to enhance it to $1 billion per annum in the next 2 to 3 years.

OUTCOME OF ACTIVITIES INTENDED BY THE ASSOCIATION DURING THE UPCOMING THREE YEARS PERIOD:
  1. As per study conducted by R&D Department of the Association that on successfully completion of Gherzi International Textile Perspective Plan of Denim Sector for Technology Upgradation recommended by Ministry of Textile Industry Government of Pakistan, not only the efficiency of the member mills will increase by 10% to 12% but also due to adhering international standards of quality to produce high quality products in order to fetch better unit price from the buyers. It will eventually increase the exports from 10% to 20% by next three (3) years.
     

  2. The Association is also considering bulk sourcing of raw material particularly dyes and chemicals in order to negotiate better prices. After getting duty free market access to EU, we anticipate an increase of US$210 million per annum of our exports of denim fabric.

SOURCE OF INCOME OF THE ASSOCIATION AND ITS UTILIZATION

The source of income of the Association shall largely depend on Membership, Annual Subscription Fee from Member Mills/Units and Sponsorship. The funds shall be utilized for promotion and attainment of objects of the Association.

ANNUAL PERFORMANCE REVIEW

  1. The Association has worked hard for 3% R&D support for denim sector. They were also successful in restoring Export Refinance Facility (Part-II) and LTF-S facility for financing value added textile machineries at concessional financing of 7% per annum by State Bank of Pakistan.
     

  2. The Association has also taken up the matter to allow actual duty drawback to denim fabric/garment and pleased to inform that the revised enhanced duty draw back is already approved which is to be notified.
     

  3. The Association has arranged through TDAP participation of the denim member mills in local and international Trade Fairs & Exhibitions like EXPO Pakistan 08 and TEXWORLD 08, Paris.

    ________________________________
    Date: 26th December, 2008
    HUSSAIN ALI BHOJANI Secretary

    Counter Signed By:

    ________________
    CHAIRMAN

 
 

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