LAHORE : Textile exports, which account for more than half of the country’s total exports, need more value addition and diversification to tap into new markets and boost competitiveness, the head of the country’s trade development authority said on Monday.
Zubair Motiwala, chief executive officer of the Trade Development Authority of Pakistan (TDAP), said there was a need to search for non-traditional markets, as there were multiple opportunities in the growing economies of African countries where China and India had already focused.
“The value-added textile exporters are front row soldiers of the economy and despite multiple challenges they are earning billions of dollars foreign exchange for the country,” Motiwala said at a reception hosted by the former chairman of the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), Ijaz A Khokhar.
The meeting was attended by TDAP Secretary Dr. Fareed Iqbal, Customs Collector Saima Aftab and representatives of various small and medium enterprises (SMEs) from Sialkot, a hub of value-added textile products such as surgical instruments, sports goods, gloves and leather garments.
The TDAP CEO agreed with the views of the stakeholders and ensured them of resolving their issues, terming them one of the most crucial matters faced by the exporters of this great SMEs hub of the country.
He appreciated the efforts of the Sialkot-based industry and said that they have made the highest value addition through R&D to improve the productivity and quality of the products. Motiwala said that the economy is facing a very tough time and the cost of doing business is increasing day by day. "At the TDAP, we are ready to facilitate trade and industry to increase the country's exports," he added. He said that with an improved supply chain, the industry can reduce its cost of business.
On the occasion, IAF Chief Khokhar highlighted the issues being faced by the industry, particularly exporters, and asked for long-term economic policies with the consultation of all stakeholders to ensure stability. Inviting the attention of the Central Bank, he said that currently, the State Bank has allowed travelers to carry only $5,000, which is not sufficient for two-week travel and needs to be enhanced to at least $10,000 as hoteling and transportation costs have gone up due to soaring inflation.
He asked the FBR to ensure sales tax refunds within two weeks, because no industry can survive on loans with extremely high interest. "Ideally speaking, the government should restart the zero-rated policy to enhance exports, which is presently declining sharply," he added.
Khokhar said that higher interest rates have badly hurt the cash flows of the industry and it should be reduced to facilitate the industry, as the exporters, especially Sialkot businessmen, are facing a severe liquidity crunch.
He said that continuous fluctuation in the exchange rate has made it difficult to quote to foreign buyers and this is the major issue, which makes buyers reluctant, because nobody can quote rightly for future orders. "Industry wants Dollar rate may be fixed for at least 3-months."
Suggesting measures for enhancement in exports, the PRGMEA former chief called for an aggressive marketing strategy in line with the strategies of our competitors, by appointing Honorary Council General in all European countries, which will cost nothing.
He also proposed to launch a regional task force of TDAP with all stakeholders taking on board and meeting on a regular basis, so that the government officials could get ground realities from all sectors all across the country, appealing to the TDAP CEO to hold a quarterly meeting with the Sialkot business community during his visit to Lahore.
Khokhar asked the government to implement the Textile and Apparel policy of 2020-2025 on priority. He added that the TEXPO should be organized in Dubai on the patron of other competitor countries of the region with a view to escalate exports.
The PRGMEA leader suggested to the TDAP CEO to sponsor a "Made in Sialkot" product exhibition in Islamabad to get liaison with the foreign mission, besides establishing an EXPO center in Sialkot, which is already approved by the Former Minister of commerce to facilitate the business community of Sialkot, Gujranwala and Gujrat.
He added that the participation of exhibitors needs to be enlarged to fetch more business, because currently, our exhibitors are about 10 percent compared to our regional competitors like Bangladesh and India, who are grabbing much more business in exhibitions due to high participation.
