Union Textiles Minister Smriti Irani has sought the intervention of her counterpart at the Consumer Affairs, Food and Public Distribution ministry to help stave off the risk of jute mill closures by increasing orders for jute sacks for packaging food grains. I wish to draw your attention to the fact the jute industry is facing shortage of jute bag orders,‖ Ms. Irani wrote to Ram Vilas Paswan, in a letter dated April 26, a copy of which has been seen by The Hindu. The issue was flagged earlier by the Textiles Secretary, who had written to his counterpart in the Consumer Affairs ministry saying that the problem had its genesis in the request made by the Consumer Affairs ministry to the Textiles ministry seeking dilution of the Jute Packaging Mandatory Order (under the Jute Packaging Material Act, 1987) in favour of the HDPE/PP bags sector. Responding to the February 8 request from the Consumer Affairs ministry, the Textiles Ministry had granted a relaxation of 2.58 lakh bales for HPDE/PP bags based on a projection of bag requirement for food grains packaging and an anticipated shortage of supply of jute bags. ―This relaxation was given to ensure that the food-procurement programme is not affected due to the anticipated shortfall in supply of jute bags till March 31,‖ the official wrote on April 24. The Secretary also noted that subsequently the total requirement till April was projected at 16.7 lakh bales, of which the order for jute bags was put at 13.68 lakh bales. The jute industry had already met 93.4% of this order.
‘Not in tune’
The Textiles ministry contends that the total bag requirement (including HDPE) was now being put at only 15.6 lakh bales and that unless the order allowing the use of HDPE bags was withdrawn the jute industry could be hit. It appears that when we met in February 2018, the supply projection for jute bags was not in tune with ground realities, which led to the dilution of the packaging order,‖ the Textiles Secretary wrote, urging the Food ministry to rescind its decision allowing HDPE bags supply. Highlighting this imbroglio, the Jute Commissioner too wrote a letter to the Director Food and Public Distribution on April 19, saying that the Textiles Ministry had agreed to dilute to the extent of 2.58 lakh bales as Secretary (Food) had said there would be a shortage of jute bags to this tune. There is no shortage of jute bags and the decision to procure synthetic bags should be reviewed,‖ the letter said. JPMA was enacted to protect the interest of raw jute farmers and workers involved in the production of jute goods by compulsory usage of jute bags for supply and distribution of commodities. Although it started with 100% reservation for foodgrains and sugar and 70% and 50% for cement and fertiliser, over the years this was diluted. This is annually decided by Centre on the basis of the recommendation of Standing Advisory Committee, a statutory body, currently it is nil for fertiliser and cement and 90% for foodgrains and only 20% for sugar.
Source: The Hindu
GANGTOK: The bilateral trade for the year 2018 between the traders of India and China through the Nathu La border started today with traders and government officials from both sides exchanging gifts and greetings. Last year, the trade was disrupted following the Doklam standoff. This year, the traders are hopeful that there would be no problem, an official of the Sikkim government said. Traders from India and the Tibetan Autonomous Region (TAR) said they were optimistic that there would be no problems this year, the Sikkim government official said, adding that the trade was stopped in July last year. "Last year, due to the Doklam standoff, trading through Nathu La was possible only for two weeks, as a result of which we incurred losses. However, we are optimistic this year," the general secretary of the Indo-China Border Traders' Welfare Association, Tenzing Tsepel, said. In 2016-2017, goods worth Rs 3.54 crore were traded via the Sino-Indian border, Nathu La, an official of the Sikkim Commerce and Industries department said at the border today. The trade between the two countries through Nathu La border, located at a height of 14,200 feet, was resumed in 2006, 44 years after it was closed. The traders' association also informed that an official meeting was held between the representatives from both sides today, including officials of the ITBP and PLA, on how to make this year's trade more efficient and cordial. Issues like currency exchange, road connectivity and problems due to inclement weather were discussed at the meeting, an official said. While the Indian traders export oil, ghee, blankets, copper items, rice, textile and processed goods, among other items, to their counterparts in the TAR, the import comprises mostly quilts and jackets, the official added.
Source: The New Indian Express
The implementation of the Goods and Services Tax (GST) has led to a drop of 30-40 per cent in the textile sales in Surat, according to the Federation of Surat Textile Traders Association (FOSTTA). The association claims that the new tax regime has led to a loss of 4 lakh jobs, while daily production has decreased from 4 crore metres to 2.5 crore metres. A number of textile units in Surat are running below their respective capacities and traders are facing payment delays in the aftermath of GST rollout. GST and demonetisation have affected the textile trade in Surat, resulting in a 40 per cent decrease in production, said media reports quoting Champalal Bothra, secretary, FOSTTA. The textile industry of Surat employs about 1.3 million workers, but 30-50 per cent of the employees have lost their jobs after demonetisation and GST. The association said that textile and related industries like embroidery, power looms and artisans are losing jobs. FOSTTA has also written to Union textile minister Smriti Irani, informing her about the situation in Surat and requesting government’s support and intervention. A majority of the textile and other related units in Surat are unorganised and are thus facing problems in implementing the structure of the new tax regime. This is leading to a decline in production as well as demand. Artisans skilled in embroidery are losing their jobs, while textile labourers are returning to their home states due to lack of work, said Manoj Agarwal, president. FOSTTA. Exports have also been affected due to GST. Multiple export orders have been cancelled as refund was not received on time, and payment delays have led to a shortage in working capital. The association estimates that exports have declined 60 per cent after GST implementation.
Source: Fibre2fashion
MUMBAI: The odds on India drawing the ‘protectionist’ US President Donald Trump’s attention may have just shortened. New Delhi’s trade surplus with Washington has risen to a record high, and Asia’s thirdbiggest economy now ranks ninth on the list of trade partners for the US, climbing from 13 six years ago. Ever since the US economy’s outlook was reviewed in 2011 by ratings firm Standard and Poors, India’s trade surplus with the US has been rising. From a merchandise trade surplus of $14.5 billion in 2011 when India ranked 13th in the list of large trading partners, India’s trade surplus with the US reached a record $23 billion by 2017 end, with New Delhi climbing four notches to become the ninth largest trading partner. India also has significant services surplus with the US, and is among the top trading partners in services. But the US government is not too happy and is protesting with multilateral agencies. “The US has raised concerns over the import duties imposed by India in the FY19 budget, and is also challenging its export subsidies at the World Trade Organization,” said Radhika Rao, India economist at Singapore-based DBS. “India remains on the list of countries that will face higher tariffs on its imports of steel and aluminium to the US. Material impact on India’s trade…. might be limited as the US accounts for 10% of India’s iron, steel, and aluminium exports. Repercussions might be wider if more blanket tariffs are imposed by the US,” she said. The US treasury has put India on a watch-list along with China and many other developed economies for amassing huge reserves and what it calls unfair currency practices, said a report released to the US Congress last week. The report titled ‘Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States’ by the US treasury office of international affairs noted that India increased its purchases of foreign exchange over the first three quarters of 2017 and warned that further dollar purchases were not required given that reserves were adequate, going by popular benchmarks. “India’s current account is in deficit at 1.5% of GDP and the exchange rate is not deemed to be undervalued by the IMF,” said the US treasury report. “Given that Indian foreign exchange reserves are ample by common metrics, and that India maintains some controls on both inbound and outbound flows of private capital, further reserve accumulation does not appear necessary.”
Source: The Economic Times
The growth of India’s core industries slowed to 4.1 per cent in March as output of refinery products, fertilisers, steel and cement moderated. Core sector had grown 5.4 per cent in February and 5.2 per cent in March last year. Official data released by commerce and industry ministry on Tuesday showed growth only in the production of natural gas and coal. The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, constitute 40.27 per cent of the total industrial production. For the full year, core sector growth was 4.2 per cent compared with 4.8 per cent in 2016-17. While coal output rose 9.1 per cent , natural gas production increased 1.3 per cent after having declined for two months in a row. Crude oil output, which has been falling for the last four months, fell 1.6 per cent in March. Refinery production increased a mere 1 per cent compared with 7.8 per cent rise in February whereas fertiliser output grew 3.2 per cent vis-à-vis 5.2 per cent .
Source: Economic Times
After taking over the responsibility as the Chairman of the prestigious Textile Association of India (TAI), Dr Hemant Sonare disclosed his own planning to accelerate the growth of textile industry in the country. Talking to The Hitavada, he said that TAI, which had 26,000 members, would take the initiative to arrange a get-together of various associations from China, Indonesia, Myanmar and Vietnam. It would try to bring the organisations such as Walmart, Costco and Target, etc. on a common platform. The Make in India initiative has made India a preferred manufacturing destination and has allowed the manufacturing sector to be beneficiary of 100 per cent FDI,‖ he said. The Government should give strong financial support to R&D. Textile industry should stop importing used machinery and encourage domestic manufacturers. Time demands improved technical courses, advanced textile engineering colleges with focussed research to develop our own pools of technocrats. Big time reforms are required in technical courses where the focus should be practical implementation of engineering concepts and an attitude towards innovative research, he felt. We are planning to establish incubation centres all across the country through 26 different units to boost entrepreneurship in textile and clothing sector. TAI will organise global innovation and research conclaves across the country to provide a platform to the young innovators and researchers, he said. Nagpur is not only ‗Orange City‘ but Cotton City‘ too because of the availability of cotton on a large scale. About 35 lakh bales are produced every year. Of them, only 7 to 8 lakh cotton bales are processed through available spinning mills and converted into yarn in Vidarbha, rest of the cotton is going out for value addition, Dr Sonare said. Vidarbha was among the highest cotton producing areas of the country with a large amount of ginning factories and spinning mills but there was not enough weaving and processing facilities available, therefore forward value addition was not taking place in Vidarbha. Forward and backward integration with value addition at every stage would bring back the glory to Vidarbha. The Government has offered special packages to promote textile and clothing sector. There is a need of concrete solutions for the cotton producing farmers of Vidarbha to increase productivity and quality. The industry should adopt cotton producing villages and adapt corporate farming to change the entire cultivation system. Farmers need modern techniques of farming and strong processing ecosystem,‖ he said. Along with the creation of textile parks, there was a need for more R&D to promote Vidarbha region as the Cotton Hub & Spinning Capital‘ of the country. Large number of suicides has brought a bad name to Vidarbha. For the survival of cotton farming sectors of Vidarbha, collective and collaborative efforts are required. TAI would address various issues of cotton and take corrective steps including educating various people in cotton value chain. This is an emotional approach which will design the future road map for progressive growth. The major cotton growing countries like China, US and Australia had faced drought-like situation due to which there would be a good demand of cotton from India in the international market. We have to grab the opportunity, he suggested.
Source: The Hitavada
At a time when the economy has been slowing, the government should have made it easier for business enterprises to hire. Given how India is fast losing its competitive edge in exports, and enterprises at home are increasingly automating operations, it is unfortunate the government doesn’t think it important enough to move on critical labour reforms. Given how India is fast losing its competitive edge in exports, and enterprises at home are increasingly automating operations, it is unfortunate the government doesn‘t think it important enough to move on critical labour reforms. After four years of inaction, news reports suggest the government no longer wants to talk tough and would rather change those laws that placate the labour unions. For instance, the Draft Code on Wages, 2017, which seeks to usher in the concept of a statutory minimum wage, and which was introduced in the Lok Sabha in August, 2017, could soon become law. This would suit both the government and the Opposition a year ahead of the general elections as would a universal social security scheme and changes that relate to more benefits for workers without hire-and-fire. To be sure, the government has amended the Industrial Establishment (Standing Order) 1946, which allows fixed-term work workers across sectors earlier, this option was available only to apparel manufacturers. This will no doubt give companies more leeway, but going by the limited traction in the textile sector where less than 700 units have used the package since 2016 to create some 1.55 lakh jobs the impact could be limited. Watering down key legislations sends the wrong signals. The crucial Labour Code on Industrial Relations already diluted to pacify labour unions is now unlikely to see the light of day. The government had first sought to allow companies to lay off 300 workers without approval but later abandoned the idea saying it would stay with the current level of 100 workers. Ideally, the threshold should be 1,000 persons. The government needs to understand that companies, even smaller establishments, need to be able to hire and fire, or they will simply stop relying on permanent work-forces. In fact, the Centre had also objected to proposals from Madhya Pradesh to exempt micro industries those with an investment not exceeding Rs 25 lakh from the purview of seven central laws, including the Contract Labour Act and the Factories Act, even though the state had pointed out that small factories were unduly subjected to harassment. At a time when the economy has been slowing, the government should have made it easier for business enterprises to hire. The KLEMS India database shows a contraction in the workforce between 2013-14 and 2015-16, with about 1.2 million jobs being lost and the total employment down from 483.9 million to 482.7 million. This ties in with the poor growth in sectors such as exports during this period. As has already been pointed out, countries with more practical labour laws such as Bangladesh have been growing their share in the global textile market at India‘s cost. The government may cite subscriber additions to the EPFO to claim millions of new jobs have been created but few are convinced.
Source: Financial Express
Tamil Nadu government must oppose the recently amended Industrial Employment (Standing Orders) Central Rules of 2018, which enables all industries to hire workers on a contractual basis for a fixed term, said S. Selva Gomathi, managing trustee, Justice Shivaraj V. Patil Foundation, here on Tuesday. Speaking at an awareness campaign launched for securing the rights of garment factory workers, particularly women, she said that the new amendment would prove detrimental to the workers as they will lose job security. Until the recent amendments, engaging employees on a fixed-term basis was allowed only in the apparel manufacturing sector. Though many companies in other sectors were already following this practice even with the old rules, the amendment will encourage them to hire primarily on a temporary basis, she said. Urging the State government to reject the amended rules, she said that the State must instead form its own rules to ensure job security of workers in all sectors. P. Muthu Raja, president, Textile Workers Union, appealed to the gathered workers to not give up their fighting spirit and be part of the unions to demand their rightful wages and decent working conditions. There is a perception among some people that many decades-old garment factories have shut down and the industry is not doing well. On the contrary, the truth is that more units have come up and the exploitation of labour has only increased,‖ he said. He said that he knew a few garment units in Madurai that have not given their workers holiday this year not only on Tuesday for Labour Day, but even for the festival of Lord Kallazhagar‘s entry into Vaigai on Monday, when the whole of Madurai comes to a standstill.
B. Thirumalai, writer and journalist, pointed out how loss of jobs in the farming sector, which used to be a major source of employment for women, has forced them to take up jobs in places like garment factories that exploit them in many ways. Alleging that employment opportunities were seeing a negative growth in the country, he also blamed the government for diluting the labour laws and consequently worsening the situation of workers in all sectors.
Source: The Hindu
Champion Thread Company (CTC) is set to display latest textile innovations at the Texprocess Americas 2018 expo, which will be held from May 22 to 24, 2018, in Atlanta, in booth #1606. CTC is a producer and provider of industrial sewing threads, engineered yarns, narrow fabrics, product packaging, and identification solutions, headquartered in the US. The company will feature several new and most popular products, sponsor a special evening industry event, and hold an in-booth promotion to welcome its customers and visitors. The company will display the new Champion SoftStitch ultra-soft thread. This specialty purpose thread is designed to meet the requirements of stretch garments that are worn close to the skin and require extreme seam elasticity. Champion Poly ChampCore is a very popular staple polyester-wrapped thread that is ideal where high seam strength and high sewing productivity is required. The company will also have industry experts on hand to advise clients on the growing demand for high quality sewing threads for automated stitching applications. CTC is elevating its visitor experience for 2018 by sponsoring the SEAMS gala event on May 23, 2018, and offering all booth visitors the chance to enter a drawing for a high-end YETI cooler. CTC president Matt Poovey said, “Based on our record setting results at the last show, we are anticipating another robust event this year. We are ready to welcome a broad range of domestic brands and manufacturers, as well as those from across Latin America and other textile producing regions. Our many existing clients will be pleased to discover the new and updated products that we will have on display. We invite all attendees to visit our booth to learn how we can help solve their toughest thread, production, and supply chain challenges.”
Source: Fibre2fashion
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1405.58 |
USD/Ton |
-0.56% |
5/1/2018 |
|
VSF |
2195.23 |
USD/Ton |
0.72% |
5/1/2018 |
|
ASF |
2842.74 |
USD/Ton |
0% |
5/1/2018 |
|
Polyester POY |
1464.80 |
USD/Ton |
0.32% |
5/1/2018 |
|
Nylon FDY |
3442.87 |
USD/Ton |
-1.36% |
5/1/2018 |
|
40D Spandex |
5685.48 |
USD/Ton |
0% |
5/1/2018 |
|
Nylon POY |
1713.54 |
USD/Ton |
0% |
5/1/2018 |
|
Acrylic Top 3D |
3205.98 |
USD/Ton |
-1.46% |
5/1/2018 |
|
Polyester FDY |
2969.08 |
USD/Ton |
0% |
5/1/2018 |
|
Nylon DTY |
1737.23 |
USD/Ton |
0% |
5/1/2018 |
|
Viscose Long Filament |
3663.98 |
USD/Ton |
-0.85% |
5/1/2018 |
|
Polyester DTY |
5969.75 |
USD/Ton |
0% |
5/1/2018 |
|
30S Spun Rayon Yarn |
2984.88 |
USD/Ton |
-0.53% |
5/1/2018 |
|
32S Polyester Yarn |
2195.23 |
USD/Ton |
0% |
5/1/2018 |
|
45S T/C Yarn |
3016.46 |
USD/Ton |
0% |
5/1/2018 |
|
40S Rayon Yarn |
3142.81 |
USD/Ton |
-0.50% |
5/1/2018 |
|
T/R Yarn 65/35 32S |
2700.60 |
USD/Ton |
0% |
5/1/2018 |
|
45S Polyester Yarn |
2337.36 |
USD/Ton |
0% |
5/1/2018 |
|
T/C Yarn 65/35 32S |
2558.47 |
USD/Ton |
0% |
5/1/2018 |
|
10S Denim Fabric |
1.47 |
USD/Meter |
0% |
5/1/2018 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
5/1/2018 |
|
40S Combed Poplin |
1.26 |
USD/Meter |
0% |
5/1/2018 |
|
30S Rayon Fabric |
0.70 |
USD/Meter |
-0.45% |
5/1/2018 |
|
45S T/C Fabric |
0.75 |
USD/Meter |
0% |
5/1/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15793USD dtd. 1/5/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
WASHINGTON - U.S. factory activity slowed for a second straight month in April, with manufacturers complaining about rising commodity prices in the wake of the Trump administration’s tariffs on steel and aluminum imports. The Institute for Supply Management (ISM) survey published on Tuesday also showed shortages of skilled workers, which together with the proposed import tariffs were causing bottlenecks in the supply chain. Rising raw material costs are the latest indication that inflation pressures are building and could attract the attention of Federal Reserve officials who began a two-day policy meeting on Tuesday. Data on Monday showed a jump in annual inflation rates in March. In addition, wages grew at their quickest pace in 11 years in the first quarter. “It supports our view that the Fed will raise interest rates three additional times this year,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. “The Fed is underestimating the amount of developing inflation pressures.”The U.S. central bank is not expected to raise interest rates when it concludes its meeting on Wednesday. The Fed increased borrowings costs in March and has forecast at least two more rate hikes for this year. The ISM said its index of national factory activity dropped to a reading of 57.3 last month from 59.3 in March. A reading above 50 in the ISM index indicates growth in manufacturing, which accounts for about 12 percent of the U.S. economy. The survey’s prices paid index increased 1.2 points to 79.3, the highest reading since April 2011. Last month, price increases occurred across 17 of 18 industry sectors. Machinery manufacturers said tariffs had increased prices for steel and other materials. They reported that “a lot of suppliers are asking for increases, and the team is battling those requests.” President Donald Trump imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum in March. However, on Tuesday he postponed imposition of the tariffs on Canada, Mexico and the EU until June 1 and reached agreements for permanent exemptions for Argentina, Australia and Brazil. Miscellaneous products manufacturers described the tariffs as “very concerning” and said “business planning is at a standstill until they are resolved.” Manufacturers of fabricated metal products said the steel tariffs had made it difficult to source material, “and we have had to eliminate two products due to availability and cost of raw material.” “Tariffs could add downside risks to factory production and increase input costs in the months ahead,” said Scott Anderson, chief economist at Bank of the West in San Francisco. The ISM’s measure of factory employment dropped in April. Transport equipment manufacturers said while business was robust, capacity constraints were a headache. They described labor as remaining “tight and getting tighter.” Those sentiments were also shared by food, beverage and tobacco products manufacturers who said shortages of trucks and drivers had impacted delivery times.
CONSTRUCTION SPENDING TUMBLES
Despite the second straight monthly drop in the ISM index, manufacturing remains underpinned by a firming global economy as well as a weakening U.S. dollar, which is boosting the competitiveness of American-made goods on the global market. Stocks on Wall Street fell as investors worried about inflation. The dollar was trading higher against a basket of currencies while prices for U.S. Treasuries slipped. A separate report from the Commerce Department showed construction spending unexpectedly fell in March as a sharp decline in homebuilding and renovations led to the biggest drop in investment in private construction projects in more than seven years. Construction spending tumbled 1.7 percent. February data was revised to show construction spending increasing 1.0 percent instead of the previously reported 0.1 percent gain. Economists polled by Reuters had forecast construction spending accelerating 0.5 percent in March. Construction spending rose 3.6 percent on a year-on-year basis. In March, spending on private construction projects declined 2.1 percent. That was the largest fall since January 2011 and followed a 1.2 percent increase in February. Outlays on private residential projects plunged 3.5 percent, the biggest drop since April 2009, after advancing 1.2 percent in February. Spending on both single and multifamily housing projects fell in March. Spending on home renovation dropped 8.0 percent last month. Economists expected the construction data would subtract one-tenth of a percentage point from the government’s 2.3 percent annualized growth rate estimate for first-quarter gross domestic product, which was published last Friday. “We expect residential construction spending to grow in 2018 on our thesis that while home building is being constrained by supply issues, the demographic demand for housing units exceeds supply,” said John Ryding, chief economist at RDQ Economics in New York.
Source: Financial Express
UTTAR PRADESH: ThreadSol, the technology leader in material management solutions for the apparel industry has announced the launch of their flagship product IntelloCut, Version 2.0 for Sri Lanka. It will be available for live demonstration at the Apparel Industry Suppliers Exhibition, running from May 8-10 in Colombo, Sri Lanka. ThreadSol’s exhibit will be located at Stall 3, Hall A, of the Bandaranaike Memorial International Conference Hall, Colombo. IntelloCut Version 2.0 is world’s first artificial intelligence based system in the apparel industry that automates fabric planning, tracks fabric usag, improves utilization and helps manufacturers ship more garments in the available fabric resulting in direct topline benefit. This thriving need of the industry for a credible and intelligent product which reduces the biggest costs in manufacturing: labor and fabric cost. It is very smartly accomplished by intelloCut which uses AI and IoT based Mobility for a dynamic planning solution. “Advent of diversification in global apparel sourcing has brought renewed focus into skill based manufacturing. This is alongside the requirement from brands for vendors to handle more styles in short lead times. Automation and dynamism is the next stop for the garment manufacturing industry and with version 2 we aim to achieve just that,” added Manasij Ganguli, founder CEO, ThreadSol. ThreadSol has partnered with the large manufacturers including, Crystal Martin Brandix, MAS, Hirdaramani in SriLanka, HS Fashions, Jiaxing New Rimei, Tomwell in China, Urmi, Bimexco, Fakri, Epic in Bangladesh, PAN Brothers, Metro Group in Indonesia, Luenthai, Saitex, Dewhirst in Vietnam, and many more from these regions. The solutions have helped them boost their topline by up to 1%. Keeping up with the evolving times of technology, ThreadSol’s outlook is to create innovative solutions powered by AI, Big Data and IoT based Mobility to drive topline and bottomline benefit for the apparel industry. The garment business is extremely competitive, but manufacturers can position themselves for breakthrough profits and improved customer service by focusing on managing material cost.
Source: Textile World
Pak-China Joint Chamber of Commerce and Industry (PCJCCI) has launched video conferencing system during a meeting with 24-member delegation of the Chinese professionals from Shandong. PCJCCI President S.M. Naveed opened the first video session and said that the Video Conferencing Sessions started at PCJCCI would eradicate the communication barriers between China and Pakistan, besides opening new vistas of opportunities to the highest level of efficiency, according to Joint Chamber’s spokesperson here Saturday. S.M. Naveed also acknowledged that China had extended proactive cooperation to Pakistan for bridging communication gap between two friendly nations by continuously identifying potential sectors of trade, investment and joint venture opportunities. He mentioned that till date, both the countries had earmarked sectors of machinery equipment, machinery hardware, new energy, battery, food, textile, electronics, building material and vehicle accessories from the city of Zibo, China. The Video conferencing session, which was headed by Frank Fa Chinese representative in Pakistan, whereas in China the session was headed by Lee. The conference was actively participated by Dawood Ahmed from Inter Sale chemicals, Farooq Sherwani from Shermir Global, Kashif from Hi-Tek Manufacturing, Idrees CEO Novamed, Rehan CEO Sixon Chemical, Waqas Director Noble Origin, Naveed CEO Fasna Group along with Roc Wang, Chris Zhu, Steve Zhu and Grace Meng from China’s city of Jinan. Whereas, PCJCCI President S.M. Naveed and Secretary General Salahuddin Hanif amicably anchored the session, said the spokeperson. She added that during the productive session, Dawood Ahmed received an offer from the Chinese delegates for facilitation of machinery setup in his industry. He was quite hopeful for its useful prospects. PCJCCI Chief announced that video conferencing sessions would regularly be held at PCJCCI office to ensure business-to-business match making and to follow up the joint venture opportunities to be identified by the business community of Pakistan and China. He was of the view that such programmes would help bring relevant business partners together, asserting that making right contacts and finding suitable trade partners had been a major issue in the past, but PCJCCI was now a digital step ahead by offering its members this unique service of business match making through video conferencing. He urged the Pak-China Joint Chamber’s members to avail this one-stop-shop facility available at PCJCCI in the form of video conferencing system between China and Pakistan.
Source: The Nation
ISLAMABAD: The UAE’s ambassador to Pakistan Hamad Obaid Ibrahim Salem Al-Zaabi on Tuesday said his country values its relations with Pakistan and it wants to strengthen economic relations between the two brotherly countries. Ties between Pakistan and UAE were defined by history, warmth and brotherly relations but Pakistani products have little presence in the UAE’s market despite good quality which must be enhanced through joint efforts and proper marketing, he added. The Ambassador said this while talking to the President FPCCI Ghazanfar Bilour. Vice Presidents of the Apex Chamber Karim Aziz Malik, Atif Ikram Sheikh, Chairman Coordination Malik Sohail and FPCCI official Amna Malik were also present on the occasion. Hamad Obaid said that Pakistan is a growing economy and he came here with a strong commitment to further strengthen relations between the two countries and that Pakistan is facing groundless propaganda about law and order which should be addressed. He invited Pakistani companies to Expo 2020, a universal exposition to be hosted by Dubai in the United Arab Emirates. Thousands of companies from 170 countries will be participating in the expo whose site will be stretched over 1083 acres while the world’s largest Solar Power Project will also start by Expo 2020. The Dubai Expo 2020 also would see a rise in the GDP as predicted by the International Monetary Fund, therefore, Pakistani companies should also avail the opportunity, he added.
Source: The Nation
KIGALI -- On a Friday morning, a 1,500-square-meter workshop in Rwanda's Kigali Special Economic Zone was busy churning out different styles of clothes. About 400 Rwandan workers of C&H Garments Ltd were cutting fabric, operating sewing machines or checking finished products, some of whom wearing uniforms with a mark that reads "Made in Rwanda." Uniforms of the Rwandan military, police, immigration department and schools are made in this Chinese-owned factory, located in Rwanda's capital Kigali. Besides the uniforms, it also produces safety warning clothes and African style fashion clothes. As the Rwandan government seeks to encourage domestic production of certain goods currently imported and promote export diversification through a "Made in Rwanda" campaign, C&H has contributed to Rwanda's local production. As orders increase, the workshop established in 2015 cannot meet demands so that C&H set up a new workshop in 2017 close to the first one, said Anna An, factory manager. Currently, C&H has 1,200 workers in Rwanda, all of whom are Rwandan, said An. The company's first workshop has five production lines and the new workshop is planning to increase to 16, said An, adding that one production line presently has capacity of producing over 1,000 pieces of clothes per day. According to her, 20 percent of clothes made by the factory are sold in Rwanda while 80 percent are sold to Europe and the United States. In the factory, Rwandan workers were working independently. "All the workers of C&H knew nothing about garment making, but now they can make clothes by themselves after being trained by the factory," said An. At the beginning of its establishment in Rwanda, C&H bought over 10 containers of cloth to train Rwandan workers who didn't have any knowledge on garment making, An explained. Our workers now are able to make all styles of clothes except the formal suit, one of the most difficult styles to be made, she said. Group leaders of the workers have the ability to design production processes, plan production procedure and arrange manpower, she added. Besides training workers, the company also has been teaching 36 Rwandans to learn embroidery for two years, she said. In January, a market manager of the factory resigned and established his own garment factory. C&H introduced its technicians to work in his factory. "Our purpose of coming here is to train locals and help them. Since he wants do his own business, we can give him some support," she said. "When I came here, I don't know anything about this (garment making), that's why I decide to work hard. Madam Anna is a good teacher and told me everything. she also motivates me," said Ericson Ndagijimana, human resources manager of C&H. "Now I know everything about this factory," said Ndagijimana, who joined C&H in 2015 after graduating from a technical school. Before becoming a member of the top management of the factory, he took roles of helper, recorder and production controller successively. "This factory is very important to Rwanda... no one knew this (kind of garment making) before. This is a modern way in Rwanda, which is new," he said. With an aim of helping Rwanda promote "Made in Rwanda", "we have so many styles that we are producing for Rwandans. We teach Rwandans to be confident that they can make and produce garments," he said. Production manager Valens Muvara also didn't know garment making before joining in the company in 2015. He was jobless, but now "controls production per day, check everywhere in the factory, and arrange jobs for day." "We have confidence that C&H will become 'Made in Rwanda' as our country needs," he said. However, C&H is currently experiencing some difficulties, but An believes that the company can overcome them. Potential withdrawal of the African Growth and Opportunity Act (AGOA) benefits from Rwanda has affected C&H's business, said An. "Many U.S. companies has stopped giving us orders," she said. U.S. President Donald Trump in March said he will suspend the application of duty-free treatment to all the AGOA-eligible goods in the apparel sector for Rwanda in 60 days. This follows a decision by East African countries to raise tariffs on second-hand clothing imports, in order to promote local manufacturing capacity in garment and other industries. The relatively high transportation cost in a landlocked country has influence on the business, she added. "We are still providing our workers with free lunch... We have now trying to get orders from Rwanda and Europe, we believe that we can overcome the difficulties by attracting more orders from Rwanda and other areas," An said.
Source: Xinhua
ISLAMABAD: The opposition in the Senate on Monday rejected the proposed budget for the next financial year, warning that the “disastrous” budget would create problems for the incoming government. Leader of the Opposition in the House Sherry Rehman opened the discussion by saying that the presentation of the budget without the National Finance Commission (NFC) award was unconstitutional. She also observed that the outgoing government had no legal and moral authority to present a full year budget. She chided the government for its non-serious attitude towards parliament as there was not a single minister present when the session began. Of the 104 members of the Senate, only 26 were present in the house, nine of them were on the treasury benches. Mr Chairman, ask those who talk about the sanctity of the vote where their ministers have gone,‖ she said, while addressing Senate Chairman Sadiq Sanjrani. She slammed the government for presenting what she called a lame duck budget.PM’s adviser says no justification for imposing financial emergency. The future of Pakistan is at risk. This is a lame duck budget by a lame duck government. This is pre-poll rigging,‖ claimed Ms Rehman. This is a borrowing, billionaire‘s and barbadi (disaster) budget,‖ she emphasised. Commenting on the fall in textile exports, she said Pakistan‘s textile industry contributed 57 per cent of the country‘s exports, but had lost its global textile share by 23pc. She said that 150 mills had shut down, which was alarming because Pakistan was the fifth largest cotton producer in the world. Pointing out lucanae in the proposed budget, Ms Rehman said: ―Our circular debt has reached a whopping Rs1 trillion. We are the seventh most stressed water nation and only Rs38bn has been allocated for water without any details. She said the public debt, which was Rs13 trillion during the Pakistan Peoples Party‘s (PPP) term had soared to a massive Rs22 trillion. Pakistan‘s entire budget is based on borrowing to pay back more loans. How can the government not call this a financial emergency? The next government will face a nightmare of repayment and no revenue stream, Ms Rehman elaborated. She said that 30pc tax concessions had been given to billionaires in the current budget but there was nothing for the poor. The government had provided no relief for the masses, she added, instead the burden remained on the poor. Why has the government given tax concessions on imported LNG and none to Pakistani gas? The Qatar LNG deal is already marred by controversy. To this day, we don‘t know what is under the black ink used to block transparency on the contract with Qatar Gas, she said. The Senator pointed out that the NFC award had not been disbursed in five years. How can they determine where the federal slew of consolidated indirect taxes like the economic fund will go without the NFC award? This budget is unconstitutional, she maintained. Ms Rehman shared that she was shocked that Rs9,800,000 per day had been allocated for the President House. I remember in PPP‘s time, it was Rs600,000 per day.‖ She shared that she found it alarming that irregularities worth Rs8 trillion had been found in the government‘s accounts. Ms Rehman noted that the absence of ministers from the house was shocking. If this is not mockery of parliament then what is? The government should stop mocking state institutions, she stressed. Dismissing the opposition‘s objections, Adviser to the PM Haroon Akhtar said there was no justification for a financial emergency, which he noted was there during the previous PPP regime. Mr Akhtar, who joined the proceedings towards the end of the session, said the country‘s economic situation had improved, and the government was leaving with twice the revenue it had inherited. The Senate will reconvene on Wednesday (May 2) at 3pm.
Source: The dawn
Mexico will be taking a counter proposal on a controversial US suggestion about auto rules of origin to Nafta talks in Washington when they resume on May 7 and says an agreement in principle on updating the pact is possible within a couple of weeks, provided all sides show creativity and flexibility,‖ according to Ildefonso Guajardo, Mexico‘s economy minister. We will be taking [to Washington] a position answering the US proposal. We‘ll be proposing elements that enable us, in accordance with what we hear this week to give viability‖ to a deal, Mr Guajardo told a news conference. US Trade Representative Robert Lighthizer said earlier that Nafta would be on thin ice‖ unless an agreement could be struck in the next two weeks. Any later and it would be the next Congress that would have to approve the deal, after the US holds mid-term elections in November. The US ‘fast-track powers for negotiation granted by Congress known as trade promotion authority also run out on July 1. Asked if an agreement would be possible by that time-frame, Mr Guajardo said: If we have sufficient creativity and flexibility, we‘ll probably be successful but I don‘t have a crystal ball to see if this will align in time, I can‘t say for sure. Further pressuring the calendar is the fact that Mexico holds presidential elections on July 1. Nationalist populist frontrunner Andrés Manuel López Obrador has indicated he want to revise parts of an agreement if he wins the election. Calendar pressures were a reality that could motivate us to have the flexibility needed to find an agreement, Mr Guajardo said. Rules of origin for the auto sector remains one of the biggest sticking points. The US is pushing for 40 per cent of light vehicles, and 45 per cent of pickup trucks, to be produced in areas where average wages in the sector are $16 well beyond those prevailing in Mexico. Around 15 of that 40 per cent related to research and development, information technology, commercialisation and logistics sectors which already commanded higher wages, Mr Guajardo said. The US proposal also seeks to raise to 75 per cent the level of components which must be made in North America to qualify for duty free access, up from 62.5 per cent now. Furthermore, the US wants certain core parts, like engines and suspensions, to have 75 per cent North American content. Eduardo Solís, head of Mexico‘s auto industry association, called the US proposals unacceptable.Mr Guajardo said he was spending this week sounding out automakers in Mexico to find out how the US proposal on the table would impact them. Other contentious issues still outstanding include dispute resolution mechanisms and rules on government procurement, seasonal produce and preferential quotas for the textile industry.
Source: Financial Times
