Govt slammed for ignoring diminishing exports

KARACHI: The All Pakistan Textile Mills Association (APTMA) criticised the government for not paying attention to the difficulties faced by the textile sector and across the board fall in this sector’s exports.

"The association repeatedly rang the alarm over the last six months but to no avail, as the government was offering too little and too late for a reduction in cost of doing business," APTMA Chairman Tariq Saud said in a statement issued on Thursday.

He said textile exports have declined not only in the month of December on month-on-month basis but also for the period July to December 2015. 

"Textile exports witnessed nose-dive right from yarn to the value-added sector both in value as well as quantity terms," he said.  

The chairman said the exports of clothing were on a downward trend over the last 24 months. "The association has been monitoring the trend and calling for the government's attention through a number of presentations in official meetings,” he said, adding that the government had delayed the revival package announced by Prime Minister Nawaz Sharif in the September 11 meeting with the industry.

Saud said the failure of the cotton crop in Punjab had further increased the difficulties for the sector, which already faced high cost of doing business.

He suggested the government to adopt the six-point revival proposal for the textile industry sent by the association. 

The six-point revival proposal includes reduction in electricity tariff through removal of surcharge under the announcement of Rs3 per unit reduction by the premier.

Removal of Gas Infrastructure Development Cess (GIDC), provision of drawbacks of local taxes and levies at 5 percent to stop further fall in exports, export refinance facility, liquidation on pending refunds, regulatory duty on import of synthetic yarns and fabrics, and withdrawal of 5 percent sales tax and 3 percent customs duty on import of cotton, he stressed.

Saud said the textile industry cannot pass on the burden to its international buyers, therefore the export-oriented textile industry should be provided electricity at Rs9/kwh across the value chain.