CONFIDENTIAL
-2-
4.
AS REGARDS YOUR 2(D) AND (E) THE DAMAGE WHICH WOULD IN FACT OCCUR TO PAKISTAN TEXTILE INDUSTRY DEPENDS ON ITS COMPETITIVENESS IN THE LONGER TERM, ABOUT WHICH IT IS VERY DIFFICULT TO FORM A CLEAR VIEW. THE INDUSTRY ENJOYS A HIGH LEVEL OF TARIFF PROTECTION AND ALSO RECEIVES CERTAIN TAX REBATES ON EXPORTS. IN ADDITION THE MULTIPLE EXCHANGE RATE CAUSES TEXTILE IMPORTS TO BE VERY EXPENSIVE IN PAKISTAN ALTHOUGH AND EXPORTS RELATIVELY CHEAPER ON THE WORLD MARKET, THE EFFECT ON EXPORT PRICES SHOULD NOT BE EXAGGERATED: AT THE HIGHEST OF THE CURRENT **BONUS** RATES APPLICABLE TO TEXTILES THE EFFECTIVE EXCHANGE RATE ON PRESENT BONUS
£1, WHICH IS NOT AN EXCESSIVE VOUCHER PRICES IS AROUND RS 20
RATE OF EXCHANGE IN ECONOMIC TERMS.
5.
SOME GENERAL BACKGROUND ON THE COMPETITIVE POSITION OF PAKISTAN INDUSTRY AS IT APPEARED AT THE TIME WAS PREPARED FOR THE TEXTILE COUNCIL AND SET OUT IN COWLINGS LETTER 892/11 OF 16 AUGUST 1967 TO STEWART B O T. WE HAVE NO MEANS OF ASSESSING HOW THE SCOPE FOR THINNING PROFIT MARGINS OR INCREASING EFFICIENCY IN PAKISTAN INDUSTRY COMPARES AT PRESENT WITH THAT IN COMPETING COUNTRIES, BUT IN THE FIRST YEARS OF
RECENT FIGURES- PAKISTAN THE CURRENT SCHEME. WE HAVE NO
DID VERY WELL OUT OF THE GLOBAL PORTION OF THE QUOTAS.
/6. PAKISTAN
CONFIDENTIAL
No comments yet.
Private notes are available after approval.