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MoC offers 25pc freight subsidy

Quota-hit exporters

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jersey bedsheets

MUZAFFAR QURESHI

KARACHI: To offset effects of the recent US move to cut bedsheets quota for Pakistan, innovative Pakistani exporters have manufactured a new type of bedsheet from jersey which is a quota free item and is in great demand in the world export market.

Sensing the scope for the export of the new textile product the Ministry of Commerce has announced 25 percent freight subsidy on the export of jersey bedsheets.

This is the first-ever textile product selected by the ministry for freight subsidy to make up for the decline in export of woollen bedsheets due to growing quota restrictions. The freight subsidy, which was hitherto granted on the export of perishable and some non-traditional items, has been approved for jersey bedsheets on the recommendations of the Pakistan Bedwear Exporters Association (PBEA).

The Chairman of Pakistan Bedwear Exporters Association, Shabbir Ahmed, told Business Recorder that the export of bedsheets can be increased to $500 million per annum with the introduction of the new item in the export market.

He said that the new bedsheets are made from high counts of yarn and are getting popular among consumers in Europe and US due to its soft surface.

The Export Promotion Bureau is now busy in working out a procedure for the grant of freight subsidy on the export of jersey bedsheets which started from July 1, 1995. It has inquired from the ministry whether the subsidy will be provided to the new exporters or to all exporters exporting bedsheets made of jersey.

The Pakistan Bedwear Exporters Association has recommended that the freight subsidy should also be granted on exports by the processing and dyeing units which have invested heavy amounts to set up plants for processing and dyeing of jersey bedsheets.

Shabbir Ahmed has thanked the Minister of Commerce, Chaudhry Ahmed Mukhtar, for acceding to the association request for grant of freight subsidy on the export of jersey bedsheets which will result in substantial increase in the export of value-added textile products.

He said that the grant of subsidy will help Pakistan exporters to compete with the Chinese and Indian exporters in the bedsheet export trade.