|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1193.89 |
USD/Ton |
0% |
|
VSF |
2095.83 |
USD/Ton |
0.78% |
|
ASF |
2479.12 |
USD/Ton |
0% |
|
Polyester POY |
1174.32 |
USD/Ton |
-0.28% |
|
Nylon FDY |
3017.35 |
USD/Ton |
-0.54% |
|
40D Spandex |
6197.8 |
USD/Ton |
0% |
|
Nylon DTY |
2625.91 |
USD/Ton |
0% |
|
Viscose Long Filament |
1378.19 |
USD/Ton |
-0.59% |
|
Polyester DTY |
3262 |
USD/Ton |
0% |
|
Nylon POY |
6010.24 |
USD/Ton |
0.27% |
|
Acrylic Top 3D |
1443.44 |
USD/Ton |
-0.56% |
|
Polyester FDY |
2846.09 |
USD/Ton |
-0.29% |
|
30S Spun Rayon Yarn |
2723.77 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1908.27 |
USD/Ton |
-0.85% |
|
45S T/C Yarn |
2968.42 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2691.15 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2103.99 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2495.43 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2886.87 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14 |
USd/Meter |
0% |
|
32S Twill Fabric |
0.96 |
USd/Meter |
0% |
|
40S Combed Poplin |
1.33 |
USd/Meter |
0% |
|
30S Rayon Fabric |
0.77 |
USd/Meter |
0% |
|
45S T/C Fabric |
0.78 |
USd/Meter |
0% |
Source : Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16310 USD dtd. 08/07/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Spun yarn export earnings continued to decline (year-on-year) for the thirteenth consecutive month in May 2015 while volume shipment growth remained on positive territory for some months now. In May 2015, all kinds of spun yarn exports were up 2 per cent in terms of volume but down 11 per cent in terms of value as FOB per unit price fell 12 per cent. Volumes were at 101 million kg worth US$300 million or INR1,890 crore, implying an average unit realisation of US$2.97 per kg. This was down US cents 42 or 12.4 per cent from May 2014. Meanwhile, the Rupee depreciated by about 6 per cent against the US$ in the comparable months.
Cotton yarn worth US$250 million (INR1,590 crore) was exported in May with volumes at 84 million kg. The average unit price realization was at US$2.99 a kg, down US cents 45 down from the same month last year. Unit value realization on export of yarns made of 100 man-made fibres declined sharply in May particularly that of polyester yarn. Total volume too declined during the month in comparison with the export in the same month a year ago. In May, 5.77 million kg of man-made spun yarn were exported, comprising 2.61 million kg of polyester yarn, 1.80 million kg of viscose yarn and 1.30 million kg of acrylic yarn.
Polyester yarn exports were down 4 per cent in value while viscose yarn export was down by a whopping 35 per cent during the month. Acrylic yarn export too declined 19 per cent in May. Unit price realization was down US cents 19 for viscose and US cents 42 for polyester from a year ago. Acrylic yarn unit price realization fell US cents 22 year on year.Viscose yarn was exported to 22 countries in May with exports valued at US$5.2 million or INR33 crore and volume at 1.80 million kg, implying average unit price realization of US$2.91 per kg. This was US cents 2 lower than realized in April and US cents 19 lesser than a year ago. Belgium remained to be the single largest importer of viscose yarn worth US$1.60 million followed by Iran with imports worth US$0.90 million.
Export of blended spun yarns aggregated US$32.6 million in May (down 1 per cent YoY) with volumes at 10.9 million kg (up 4 per cent YoY). This compares much better than the performance in 100% cotton and 100% manmade fibre yarns sectors. In May, 6.7 million kg of PC yarns worth US$18 million and 2.5 million kg of PV yarns valued at US$7.4 million were exported. Their respective unit value realizations were US$2.71 a kg and US$2.89 a kg, down US cents 31 and US cents 10 in order.
Source : Yarn and fibre
The Indian textile sector has a stable outlook on the account of lower input costs, robust domestic demand and competitiveness in apparel exports in the current financial year, according to report by India Ratings and Research (Ind-Ra). However, the outlook for cotton yarn exporters is negative due to a slowdown in demand for yarn particularly from China, leading to softer yarn realizations and lower capacity utilization, the report added.
The outlook for the cotton textile sector is led by stable spinning margins in the cotton yarn segment, range-bound cotton prices and favourable domestic and export demand for downstream fabrics and apparels.The outlook for the synthetic textile sector has been revised by India Ratings to negative for FY16 from 'negative to stable'. Unfavourable cotton-polyester staple fibre spreads have hurt substitution demand for synthetic fibres and synthetic yarn. Lower export competitiveness of Indian synthetic yarn also contributes to the subdued outlook as import and central excise duty continue on man-made fibres. Oversupply of cotton and cotton yarn over FY16 coupled with lower average crude prices could also cause the price of polyester fibers to decline. Ind-Ra expects contribution margins for polyester yarn to remain downcast in FY16. Margins for texturised yarns and fully drawn yarns are likely to be partly insulated due to higher value addition.
Trends for FY16 in the textile sector indicate more cautious inventory management, risk aversion towards holding higher raw material stocks and focus on efficiencies in cash conversion cycle. Although India has a small share in the global textile trade, it is well positioned to gain from weak input prices and growing demand for apparels and made-ups. The trends, if sustained in FY16, are likely to improve the financial metrics of garment manufacturers, Ind-Ra said. Presently, Pakistan and Bangladesh are one of the biggest players in the textile sectors. Last year the EBITDA margins for the textile firms were affected after a 20 percent decline in cotton prices. As a result inventory held by the textile firms too saw lower profit margins. In the current financial year the margins could recover in the range of 10-13 percent, as per the report.
Source : Yarn and fibre
“The auction was started some days back in the popular Bhoodapady Regulated market Committee (RMC) and weekly auction would be conducted on every Wednesday. During the last three weeks totally 10,000 bags of the fibre arrived for sale. For the last three weeks the Bt cotton was sold at Rs. 3,700- 4,210 a quintal, which was Rs. 1,000 less than last year’s price,” said a spokesperson of the RMC. He said last year the cotton was sold at Rs. 5,200 a quintal and in some weeks the price escalated to Rs. 5,600.
This year the cotton acreage in the district is on the rise and huge quantity is likely to arrive for sale. Due to a decrease in yarn price, the buyers – mainly the spinning mill owners – quoted decreased price for the commodity and purchased all the arrived cotton. On Wednesday 2,100 quintals (8,000 bags)arrived for sale and fetched a maximum price of Rs. 4,310 a quintal.
Source : The Hindu Business Line
Credit rating agency India Ratings and Research (Ind-Ra) has maintained an overall stable outlook for the cotton textile sector for FY16. This is led by stable spinning margins in the cotton yarn segment, range-bound cotton prices and favourable domestic and export demand for downstream fabrics and apparels. However, the outlook for cotton yarn exporters is negative due to a slowdown in demand for yarn particularly from China, leading to softer yarn realisations and lower capacity utilization, the agency saidin a press statement.
Cotton spinners’ EBITDA margins, which were hurt by inventory valuation losses on a 20 per cent decline in cotton prices in FY15, could recover in FY16 in the range of 10 per cent -13per cent. However, it would still remain lower than the FY14 levels (14 per cent -16 per cent) which benefitted due to exceptionally high Chinese demand. Ind-Ra has revised the outlook for the synthetic textile sector to negative for FY16 from ‘negative to stable’. Unfavourable cotton-polyester staple fibre spreads have hurt substitution demand for synthetic fibres and synthetic yarn. Lower export competitiveness of Indian synthetic yarn also contributes to the subdued outlook as import and central excise duty continue on man-made fibres, the statement said.
Oversupply of cotton and cotton yarn over FY16 coupled with lower average crude prices could also cause the price of polyester fibres to decline. Ind-Ra expects contribution margins for polyester yarn to remain downcast in FY16. Margins for texturised yarns and fully drawn yarns are likely to be partly insulated due to higher value addition. Apparel exports could continue to show a positive growth trend in FY16, driven by the improving economic outlook of buyer countries, the agency said. India has gained out of higher wages, political instability and work place accidents in other apparel exporting nations. Although India has a small share in the global textile trade, it is well positioned to gain from weak input prices and growing demand for apparels and made-ups. The trends, if sustained in FY16, are likely to improve the financial metrics of garment manufacturers.
Growth of garment manufacturers might remain largely volume led while realisations could continue to exhibit commodity and competitive pricing pressure. Companies with diversification in higher value-added products are likely to benefit from the tailwinds of input price reduction. However, commoditised products will see a pass through, and not any margin expansion. The agency has maintained a Stable Outlook on its rated textile companies as they are likely to show ratings stability on growing domestic demand, competitiveness in apparel exports and an overall improvement in credit profile (i.e. lower gearing and leverage). Trends for FY16 in the textile sector indicate more cautious inventory management, risk aversion towards holding higher raw material stocks and focus on efficiencies in cash conversion cycle.
Source : Fibre2fashion
Falling for a second day, the rupee on Wednesday depreciated by 14 paise to close at over one-week low of 63.60 against the US currency, on steady dollar demand from public sector banks (PSBs) and importers.
A massive rout in financial markets and commodities worldwide, jolted by a Chinese stock bubble burst, also weighed on the local currency, a forex dealer said. However, the weakness in the US dollar against other Asian currencies limited the rupee’s slide. In foreign trade, the dollar retreated from its one-month high, pressured by stronger yen and fresh hopes for a solution to the debt crisis in Greece. The domestic currency opened substantially lower at 63.55 to a dollar, compared with the previous closing level of 63.46 at the Interbank Foreign Exchange market, on heavy dollar demand from banks and importers amid sharp fall in the domestic equity market.
It drifted further to hit a fresh intra-day low of 63.64 before ending at 63.60, showing a fall of 14 paise, or 0.22 per cent — the level not seen since June 24, this year. The rupee touched a high of 63.52 during the trade. The BSE Sensex nosedived by about 484 points, or 1.72 per cent, to settle at 27,687. The US dollar index was down by 0.1 per cent to 96.77.
Oil bounced back from a three-month low to around $57 a barrel on Wednesday, after an industry report showed a larger-than-forecast drop in US crude stocks and also Iran nuclear talks failed to produce a deal. In the forward market, the premium for dollar ended marginally higher on mild buying pressure from corporates. The benchmark six-month premium payable in December held steady at ~2.15-2.17, while for June 2016 contract, it edged up to ~4.36-4.38, from ~4.354.37 on Tuesday.,
The rupee firmed up further against the pound sterling to 97.73, from 98.08. However, the domestic unit fell back to 70.01 a euro against 69.57 and slumped further against the Japanese currency to 52.27 per 100 yen, compared with 51.84 on Tuesday.
Source: Business standard
The government has sought to allay fears of traders over "complexities" of the Goods and Services Tax (GST) with finance minister Arun Jaitley saying that the proposed taxation system will end the cobweb of various taxes and "miseries" being faced by the trading community, according to an agency report.
Jaitley's assurance came when a delegation of the Confederation of All India Traders (CAIT) led by its national secretary general Praveen Khandelwal called on the minister recently to express its reservations over the proposed GST and the its complexities. The CAIT delegation said Jaitley also promised that the GST will end the cobweb of various taxes levied at different stages from production to distribution and will also bring an end to multiple authority taxation regime.
Jaitley also told the delegation that GST will give every opportunity to traders and other stakeholders to make a voluntary compliance which will widen the tax base. The GST Bill is currently being scrutinised by a select committee of the Rajya Sabha. At a meeting of the select committee last week, the Congress demanded that alcohol, tobacco and electricity be included within the ambit of the GST. The party wants petroleum products to be under GST from the first year itself instead of a gradual inclusion over five years. It has also opposed the 1 per cent additional tax that states were allowed to levy — to be collected by the Centre and eventually devolved to them. (SH)
Source : Fibre2fashion
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 55.62 per barrel (bbl) on 08.07.2015. This was lower than the price of US$ 56.01 per bbl on previous publishing day of 07.07.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3535.76 per bbl on 08.07.2015 as compared to Rs 3549.35 per bbl on 07.07.2015. Rupee closed weaker at Rs 63.57 per US$ on 08.07.2015 as against Rs 63.37 per US$ on 07.07.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on July 08, 2015 (Previous trading day i.e. 07.07.2015) |
Pricing Fortnight for 01.07.2015 (June 12 to June 26, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
55.62 (56.01) |
61.66 |
|
(Rs/bbl |
3535.76 (3549.35) |
3935.76 |
|
|
Exchange Rate |
(Rs/$) |
63.57 (63.37) |
63.83 |
Source : Ministry of Textiles
The Egypt’s agriculture ministry on Tuesday took a decision to temporarily ban cotton imports to improve and protect domestic cotton production and defend the interests of cotton producers, manufacturers and exporters of the country as it fear that its textile industry may end up paying the price. The decision dictates that all imported cotton will not be allowed in the country for an indefinite period of time, excluding imports shipped before 4 July.
However, in a country where textile manufacturing is highly dependent on imported short-staple cotton, a crop rarely grown in Egypt, the decision has sparked fears of a backlash on the domestic spinning and weaving industry. Mohamed El-Morshedy, chairman of the chamber of textile industries said that it's a disastrous decision that may lead to factories closing down and will negatively affect the textile sector. El-Morshedy criticised the decree, saying that it arbitrarily creates a market for traders and then forces manufacturers to buy from them.
How can there be a ban on importing a type of cotton (small or medium staple cotton) that don’t even grow in the country? It’s a main raw material that that is used in manufacturing, he said. The Egyptian long-staple cotton, which over the years has become known as “white gold”, has an international reputation for being one of the finest in the world and is used in high-quality clothing. The luxurious cotton, however, is usually exported as raw material, due to the high expense and the difficulty of turning it into final products, while Egyptian manufacturers find it more profitable and are equipped to spin from short-staple varieties.
Egypt exported $83.8 million worth of raw cotton in 2013/14, down from $120.3 million the year prior, according to Central Bank data. Imports of raw cotton, however, grew to $117.8 million in the same year up from $51.3 million. The decision is in favour of the farmers, argues Cairo University agricultural economist Gamal Siam. According to Siam, the decision will force cotton traders to buy domestic cotton at a better price, higher than the international price. However, he too sees that it will harm a cotton textile industry highly dependent on short-staple cotton. The government is enforcing [Egyptian] cotton on [the factories]. The ideal solution would be for the government to provide subsidies, but the government is against all forms of subsidies. Banning imports however is very dangerous.
Earlier this year, the government decided to end a decades-old system according to which the government guaranteed that it would buy cotton yields from farmers. In 2014, the last year it guaranteed farmers that they would sell their crops, the government paid LE1,400 per feddan (1.038 acres), or a total of LE420 million ($58m) nationwide. The government concluded that growing cotton, particularly the long-staple variety which has long been Egypt's hallmark, was too costly at a time of declining demand for the crop locally and internationally.
The decision has left farmers who choose to continue to grow cotton on their own to find buyers. Agriculture ministry spokesman Eid Hawash for his part said that the recent ban on cotton imports was influenced by the need to protect Egyptian farmers from becoming prey. The decision came as there have been leftovers of locally-grown cotton that should be prioritized and marketed first, before bringing in new imports.
Mohamed Barghash, head of the farmers union, said that, in theory, it was a healthy decision but with limitations, as it doesn’t provide a clear mechanism to protect farmers. Cotton is in desperate need for a mechanism to protect the farmers from making losses . If there is no mechanism for marketing their crop, the losses will be doubled as the government doesn’t guarantee the implementation of a fair price for cotton.
Even with the government's fixed price, farmers will continue to be manipulated by traders to sell at what Barghash claims is half of the fixed price. The solution, according to Barghash, would have been for farmers to sell their cotton directly to the state-owned holding company for spinning and weaving at a fixed price, and for the holding company to then sell it on to traders. There needs to be a mechanism to ensure that farmers make profit and receive all their dues.
Source : Yarn and Fibre
Garment manufacturers in Rangoon announced that they will push back against a minimum wage proposed by the Burmese government, claiming they cannot afford to pay laborers the 3,600 kyats (US$3.24) per eight-hour day recommended by an expert committee. More than 150 members of the Myanmar Garment Manufacturers Association (MGMA) convened on Thursday to discuss the proposal, which was announced earlier this week by Burma’s National Minimum Wage Committee.
Following two years of research and analysis, the committee settled on the number based on recommendations by both unions and employers against escalating commodity prices in Burma’s emerging market.Once approved, the wage would apply to all sectors with the exception of small and family-owned businesses employing less than 15 people. The committee’s memo, published in state media, invited individuals and organizations to submit appeals and recommendations within two weeks, after which a stakeholder meeting will be held before a wage is officially enacted. The MGMA members, a mix of mostly South Korean, Chinese and a handful of Burmese factory owners told reporters that they plan to formally oppose the proposal and submit an alternative offer of 2,500 kyats per day for all those working in the cutting, measuring and packaging (CMP) industry.
Khaing Khaing Nwe, the secretary of MGMA, said employers in CMP would agree to gradually increasing the wage to 3,600 kyats over the coming years if manufacturers find that they can support the raise. “As we get paid for the job when it’s done,” she said, “we can’t afford to raise the price of the product. We depend on our orders.” Manufacturing associations representing Chinese and South Korean factories—which are members of the MGMA but spoke on behalf of their national associates—warned that they would shut down operations in September if the proposed wage were implemented. Representatives said that about 30 Chinese and 60 Korean factories employing some 200,000 workers would be affected by the wage and would likely cease working in Burma due to the costs.
Burma’s budding garment industry has presented the loudest opposition to the proposed minimum wage, which is higher than that of neighboring Bangladesh, but still one of the lowest in the region. Minimum wages vary by region in Vietnam and China, but both float above $100 per month across sectors in most regions. In Cambodia, which also has an enormous garment manufacturing industry, the minimum wage is set at $128 plus bonuses and overtime, leaving the average garment worker with a salary of $183 to $200 per month, according to the International Labour Organization (ILO).
Trade representatives in Burma have lobbied for quick implementation of the country’s minimum wage, warning dissenting voices in the garment sector that they risk slowing down the process for millions of other employees. Aung Lin, chairman of the Myanmar Trade Union Federation (MTUF), said the wage needs to be implemented immediately to avoid predatory investment in all sectors. “Foreign investors will look out for their own interests, they will not prioritize the development of our people’s human resources,” he said. “We cannot say that a situation whereby people from this country are barely surviving, nearly starving, is good enough. We have to think about upgrading it.”
Source : Global Textiles
Polytex Far Eastern Vietnam, a subsidiary of the Far Eastern New Century Corporation (FENC) from Taiwan, has received an investment certificate from the People’s Committee of the southern province of Binh Duong to invest US$274 million into building a textile and garment production site. The 99-hectare project adds to FENC’s existing Apparel Far Eastern garment production facility established in 2007 in Vietnam Singapore Industrial Park I, also in Binh Duong.
This investment is specifically aimed at exploiting business opportunities presented by the Trans Pacific Partnership (TPP). The upcoming vertically-integrated production site for yarn, fabrics, dyeing and apparel aims to meet the TPP’s yarn forward rule. FENC expects to invest up to US$320 million in the project, and turn Vietnam into its third vertically-integrated production site, after China mainland and Taiwan.
FENC is among foreign enterprises ramping up their investments in order to enjoy the zero tariff rate offered by the TPP. Vietnam has recently received big garment and textile projects with combined capital of US$2.27 billion invested by Hong Kong-based companies Tal, Crystal Pacific, Bros Eastern, and Haputex, and China mainland-based Texhong and Shengzhou. Meanwhile, state-run Vietnam Textile and Garment Group (Vinatex) is also pushing its game to prepare for the potential signing of the TPP. Earlier this year, Vinatex announced it would invest in more than 30 major projects to develop supply chain links among its subsidiaries between 2015 and 2017.
The group recently got permission from Nam Dinh provincial People’s Committee to build the US$400 million Rang Dong Industrial Park (IP) for integrated textile and garment supply in the province.
Source : Global Textiles
State Minister for Textile and Jute Mirza Azam said the government will sign memorandum of understanding (MoU) with China soon for Balancing, Modernisation, Rehabilitation and Expansion (BMRE) work of all the jute mills under the Bangladesh Jute Mills Corporation (BJMC), reports BSS. As per the MoU, the Chinese government will provide credit at 1.5 per cent interest to Bangladesh for executing BMRE work. The loan amount would be refunded within 20 years.
The State Minister made this announcement on Thursday while he was addressing a meeting with the Sramik League leaders of the BJMC held at the conference room of the ministry concerned in the city. With Minister for Textile and Jute Imajuddin Pramanik in the chair, the meeting was attended by BJMC chairman Major General (retd) Humayun Khaled, Joint Secretary of the ministry M Mahmudul Haq, Labour Affairs Secretary of the ruling Awami League Habibur Rahman Siraj, Bangladesh Jute Mills Sramik League President Sarder Motahar Hossain, General Secretary SM Kamruzzaman Chunnu and labour leaders from different Jute mills. On 2009, the government led by Prime Minister Sheikh Hasina has rejuvenated the dilapidated Jute Industries of the country by coordinating the credit amount of Tk 52 billion(Tk 5,200 crore) for the jute sector and resumed operation of five closed jute mills under the BJMC, said the state minister.
All sorts of efforts for the development of the jute sector are underway by the government as the traditional sector can regain its lost glory, added the state minister. The BJMC workers will get dearness allowances (DA) along with their wages before the upcoming Eid-ul Fitr, the state minister assured the labour leaders at the meeting. At the same time, they will get festival allowances before the Eid, he said. Meanwhile, the government is trying to solve various problems including paying the dues and gratuities, Provident Fund (PF) of the jute mills workers gradually, said Mr Azam . Simultaneously, the government is planning to make the BJMC self-sufficient, added Mr Azam. BJMC is the biggest employer in the industrial sector of Bangladesh. It provides direct employment to about 70,000 workers and 5,500 officers and staffs supporting the livelihood of around 6 million farm families. More than 50 million people are directly or indirectly involved with jute and jute related industries in Bangladesh, according to the BJMC website.
Source : Global Textiles
More than 300 Kenyan companies have been forced to stop selling their goods to the East African Community (EAC) market. According to manufactures goods from outside the trading bloc, especially from China, are exempted from such charges, thus edging out local firms from the market. Companies signed up on the scheme attract full duties, levies and other charges provided in the Common External Tariff (CET) for goods sold in the customs territory, according to Article 25 of the EAC Customs Union Protocol.
Goods benefiting from duty-free status under the customs union are charged CET of 10 percent on raw material and 25 percent on finished products due to which locally produced goods are now facing stiff competition with companies under the duty remission scheme declining from 500 to 200 this year, said Kenya Association of Manufacturers chief executive Phyllis Wakiaga. Wakiaga speaking at the quarterly meeting with the Ministry of Industrialisation in Nairobi yesterday said there is need to re-look at the article to ensure non-tariff barriers are minimised. The charges are hampering trade within the region.
Kenya’s manufacturing sector contributes 10 percent to the economy. Sale of goods in the customs territory is also capped at 20 percent of a company’s annual production. Industrialisation Cabinet secretary Adan Mohamed, said that such restrictions have constrained firms especially in the textile industry from expanding business. Kenya is banking on 26 new markets expected to be opened up following a tripartite agreement signed by the EAC, Common Market for Eastern and Southern Africa and Southern Africa Development Community.
Source :Yarn and fibre
Netherlands Embassy in Islamabad, PakistanThe Netherlands has signed a three-year agreement with the International Labour Organisation (ILO) to support the government of Pakistan in strengthening the country's labour inspections. This unique partnership aims to support the Pakistani government, workers and employers organizations in developing measures to revitalise the country’s labour Inspection machinery. Such improvements are imperative to keep Pakistan’s textile sector attractive internationally, especially given the advantageous trade conditions offered to Pakistan under Generalised System of Preferences or GSP Plus.
At a press briefing on the project in Islamabad, acting Dutch ambassador Renate Pors said, “I am encouraged to see that the Pakistani authorities are conscious about what is at stake for the economy, for employment and for the rights of its citizens. The Netherlands is contributing its share through this programme. And as a friend of Pakistan, we ask the Pakistani government, both federal and provincial, to assume its responsibilities, too.” Ministry of overseas Pakistanis and HRD federal secretary Sikandar Ismail Khan highlighted that “labour inspection is one of the core functions of labour administration system and a key element for enduring the implementation of labour policies, providing feedback and allowing for readjustment of these policies as necessary,” according to media reports. The ILO said on its website that the new project can be seen as an important component of its overall efforts to support the Pakistani government in their compliance with international labour standards.
Labour inspection is a critical factor in the growth of sustainable enterprises in Pakistan, particularly in the context of the ‘GSP Plus’ status, making Pakistani products have duty free access to the European market, which came into force in January 2014. Although Pakistan ratified the Labour Inspection Convention, 1947 (No. 81) in 1953, there has been a strong call among stakeholders to strengthen the effectiveness of labour inspection. There is also a need to ensure the enforcement of legal provisions in the context of the delegation of legislative powers to provinces and jurisdiction in labour-related matters, which has also been expressed by the Committee of Experts on the Application of Conventions and Recommendations (CEACR).
The ILO said that following the disastrous 2012 factory fire in Ali Enterprises in Karachi , where 260 women and men lost their lives and more than 1,000 workers lost their jobs, effective labour inspection that looks at occupational safety and health (OSH) in Pakistan is needed. But the ILO acknowledged that the tragedy saw the government, workers and employers come together in the development of the Joint Action Plan on OSH for the Sindh province, which has been implemented since 2013. The government of Pakistan now aims to refine this action plan and replicate it in other provinces.
Source : Fibr2fahion
