“While there is a need to diversify the base of exportable goods through broad policy initiatives, FPCCI said, for now the country will have to depend on traditional textile sector, which has been badly ignored in past fiscal and monetary policies. Textile products including cotton cloth, cotton yarn, knitwear, bed wear and readymade garments made up 70 per cent of total export receipts in 2006-07, according to State Bank of Pakistan SBP). Though textile exports have done relatively well in current fiscal year, businessmen feel they could have done better with the government support. .Thus, in its recommendations, FPCCI proposed but not for the first time that basic raw material used for production of value-added goods should be exempted from taxes. Rather, duties should be imposed on import of luxury items like cars, it said. It has also recommended that cost of utilities should be cut by 25 per cent for export-oriented industries. But another suggestion against further tightening of monetary policy might be hard for the government to comply with, at a time when inflation is rising in double digits.Source: YarnsandFibres.com