Pakistan - Textile Exporters fear $2b decline in exports
Dated- 13 Jun , 2012 - Pakistan
Textile exports have declined by $1.3 billion during the last seven months and they will further come down by $2 billion by the end of this fiscal year if the recommended Rs 30 billion is not allocated for the local taxes drawback in the budget.
These apprehensions were expressed by Pakistan Textile Exporters Association chairman Rana Arif Tauseef in a press statement here on Tuesday. “Barring first three months of the current financial year, the textile exports have recorded continuous decline ranging from 10 per cent to 19 per cent over the last seven months,” he said, adding that the decline would further widen this month.
About different hurdles in the way of textile exports, the PTEA chief said that huge amounts of exporters were stuck up in local taxes drawback scheme, custom rebate, sales tax and federal excise duty refund. “Exporters will be able to expand their export if their funds are released immediately. The Textile Ministry had recommended Rs 30 billion for local taxes drawback, but the recommendation has not been included in the budget.”
He asked the government to take notice of the difficulties being faced by exporters as well as the decline in textile exports and take immediate steps to allocate Rs 30 billion. The PTEA chairman said that since the exporters were paying 0.25 per cent export development fund, the amount should not be allocated to the TDAP but to exporters to help increase the exports of the country.
He demanded that the business cost should be reduced and unnecessary burden on exports should be lessened. He demanded the removal of protective duty on imported inputs like caustic soda, filament yarn, nitrogen, screens, dyes and chemicals used for manufacturing of export goods. “It will enable the exporters to reduce the production cost and become price competitive with regional rivals on the export front,” he said.
He said that the exporters were presently confronted with liquidity crunch and were not in a position to increase their export turnover. “There is dire need to provide impetus to exporters to stem the declining trend in textile exports which having dipped 16 per cent over the last seven months are estimated to further stoop by $2 billion by the end of the current fiscal.” The PTEA chairman urged the budget makers to take a realistic view of economic realities and take appropriate steps to lift economy.