KARACHI: Valued added textile exporters sought government attention on Wednesday, saying the industry was on the verge of collapse and the government had continuously “postponed scheduled meetings” with them. “The value-added textile exporters, who contribute significantly to the country's foreign exchange earnings, are deeply distressed by the government's neglect and harsh treatment,” Muhammad Jawed Bilwani, chairman of the Pakistan Apparel Forum and chief coordinator of the Value-Added Textile Forum, said.
A decline in textile exports has contributed to an overall slump in the country’s total exports by 11.61 percent compared to the same period last year, resulting in a shortfall of $3 billion in foreign exchange, according to Bilwani.
“The textile export industry in Pakistan is facing a severe crisis as the Prime Minister and Finance Minister have continuously postponed scheduled meetings with the textile exporters over the last six months,” he said. Bilwani alleged that instead of consulting genuine stakeholders, the prime minister, finance minister, and their economic team had been favouring a select group of businessmen for
discussions on the upcoming budget, exacerbating a sense of discrimination.
“While the exports of these favoured businessmen have flourished, the small and medium-sized enterprises (SMEs) in the textile sector are struggling for survival with no representation or voice in the government.” He was of the view that such discrimination shakes the confidence of SME textile exporters, and has resulted in closure of hundreds of business entities engaged in export activities.
“The State Bank of Pakistan, under government pressure, has imposed harsh regulations and penalties on exporters, while importers enjoy favourable terms, such as deferred payments,” Bilwani said, urging the central bank to restore the previous 180-day export realization time limit to prevent a further downfall in the exports.
Bilawani further stated that political instability and a negative portrayal of the country’s economic situations were pushing foreign buyers to cancel their orders and shift their businesses to other countries in the region.
“The government's lack of response to the pleas for assistance from the struggling export industries, coupled with issues such as gas shortages, power cuts, delays in refunds and claims, and the suspension of favourable policies, reflects an anti-business and anti-export stance,” he said. The chief coordinator urged that all stakeholders needed to address the textile issues at the earliest.