The federal government has formed separate committees to address key issues facing Pakistan’s textile export industry and directed them to submit recommendations within 15 days following a high-level meeting on declining textile exports and domestic trade.
The meeting, held on October 13, was chaired by the commerce secretary and Rana Ihsaan Afzal Khan, coordinator to the prime minister.
According to the Pakistan Textile Exporters Association (PTEA), the government took serious note of its concerns after the association warned on October 7 of declining textile exports and domestic commerce and called for structural reforms to restore competitiveness. PTEA Patron-in-Chief Khurram Mukhtar and Chairman Reehan Naseem represented the association.
PTEA proposed a temporary Duty and Tax Remission for Exports (DLTL) incentive of 6 to 8 percent of total export sales, conditional on 10 percent export growth, to help exporters retain their international market share.
It also called for structural reforms to address longstanding challenges affecting industrial production, financing and competitiveness.
Electricity tariffs were a major concern. PTEA highlighted an estimated Rs. 56 billion anomaly involving cross-subsidies imposed on B3 and B4 electricity consumers.
The Power Planning and Monitoring Company (PPMC) acknowledged Rs. 26 billion of the identified amount, according to the association.
The next meeting with power sector authorities is scheduled for October 16. The Ministry of Commerce has directed the authorities to reach a final conclusion for a decision by the prime minister.
PTEA also challenged the methodology used to calculate the levy on gas tariffs and raised concerns over Unaccounted-for Gas (UFG) charges, which exporters say increase industrial energy costs and weaken competitiveness.
On logistics, the association welcomed the maritime affairs minister and his team’s efforts to reduce domestic costs and improve port efficiency. However, it highlighted the lack of regular cargo trains from Faisalabad, Lahore and Multan, high sea freight charges, lengthy transit times and operational problems at transshipment hubs.
The association also raised concerns about pricing anomalies under the Export Finance Scheme (EFS), inadequate allocations for the corporate sector and some banks’ failure to implement the announced fixed interest rate of 4.5 percent.
Discussions with the FBR covered delays in sales and income tax refunds and duty drawbacks, which the industry says constrain exporters’ liquidity and their ability to finance production and fulfil orders.
PTEA described the meeting as productive, saying the issues were examined in detail and other stakeholders supported its position. At the association’s request, separate committees were formed to examine the issues and submit recommendations within 15 days.
The industry hopes the recommendations will lead to practical measures to restore exporter confidence, protect Pakistan’s share of international markets and reverse the decline in textile trade.
The post Govt to Fix Textile Exports appeared first on ProPakistani.