About PDMEA

Chairman Introduction

JUSTIFICATION FOR ESTABLISHMENT OF THE ASSOCIATION:

The need for establishment of the Association is justified as under:-

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. The following facts and figures may be considered:
   
   Foreign and local investment in the denim sector in Pakistan (Rs. 40 billion)
   
   The export of denim fabric is summarized as under:-

8. 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.

9. 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.

10. 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.