ICST for restructuring export sector

Islamabad: Islamabad Chamber of Small Traders (ICST) on Monday asked the government to restructure the ailing export sector to reduce dependence on loans and provide jobs.

Pakistan is suffering from limited export surplus while business community favour export of raw materials and low value-added products which should be redirected, it said. The heavy concentration of exports in few commodities and few markets has led to export instability, said Patron CST Shahid Rasheed Butt. He noted that incentives are frequently announced for the export sector, especially to the textile sector which has not increased exports but enriched some exporters. Shahid Rasheed Butt said that fundamental changes are required for the restructuring of the export sector so that it can have a positive impact on the overall situation which is very discouraging, he observed

Pakistan has already lost a significant part of the international textile clothing market to regional rivals and now we are fast losing yarn markets to the much cheaper products from competitors, he added.

Yarn exports from Vietnam have become a threat due to increased Chinese investment and relocation of textile units, he said, adding that domestic cotton consumption is increasing in Vietnam and Bangladesh while it is declining in Pakistan. Pakistan can only overcome challenges in the export sector if it diversifies its exports in commodities and also in terms of markets.