Achi news desk-
Textile exporters have requested the government to take concrete measures to boost the performance of this vital sector of the economy for improving exports and creating jobs.
Pakistan Textile Exporters Association chief sponsor Khurram Mukhtar told WealthPK that the textile sector is facing the biggest problem of expensive energy. He said that the electricity rate per unit has been increased from Rs20 per kWh to Rs43.07 per kWh, creating problems for the exporters.
“The government has to improve the sales tax refund system, which creates a lot of problems for the exporters by delaying their refunds,” he said.
Similarly, he said that the high interest rates are hitting industrialization in Pakistan badly, and called for a reduction in the key policy rate. “The cost of setting up a new industrial unit is very high amid the record high policy rate, and investors tend to be risk averse,” he added.
Mukhtar said that due to the difficult economic conditions, the textile sector was not operating at its best level.
He said, “The authorities must devise a strategy to rehabilitate the abandoned units to help boost exports and create jobs. Without boosting exports, we cannot fight the massive trade deficit.”
Ahmed Ali, another textile exporter, said that successive governments have failed to realize the potential of the textile sector to rid the country of the forex exchange issues and create jobs for millions.
He said that the governments had never given weight to the suggestions of the textile exporters. They also blasted the government for suspending their sales tax refunds.
“How can a business operate without funding? Withholding refunds is leading to financial crunch,” he said, adding that the government had recently promised that withheld funds of billions of rupees would be released soon, but to no avail.
“We have the ability to outperform our regional business competitors, including India, Bangladesh and Vietnam. To achieve this task, we need to have a smooth supply of electricity and gas at affordable rates along with raw material. These facilities are essential components to run the textile sector,” he said.
He said without introducing export-friendly policies with input from stakeholders and ensuring consistency of policies, Pakistan could not achieve sustainable and inclusive economic growth.
He said efforts should be made to achieve rupee-dollar parity, which is hitting the export sector badly. “As the demand for textile products increases in the international market, we must seize this opportunity by making our products competitive.”
He also urged the government to immediately ban the export of raw fabric as it would not benefit the textile sector or the national kitty. “We have to export the fabric after adding some value to it,” he added.
Ameen Ahmed, a junk yard owner, told WealthPK that scores of power loom owners have sold their machines citing increased expenditure on gas, electricity and raw material.
“In the past, when the power loom sector was booming, we benefited from buying its scrap. However, now the situation is different as the unit owners are selling machines forced by difficult economic conditions,” he said.
