Exporters of textile and leather products in Pakistan want a zero-rating regime available to them. They say this will help them compete with their rivals in international markets. Pakistan’s exports of textile and leather products have been persistently declining. And the exporters’ margin of profit is a meager 4 to 5 per cent. Local taxes and levies are reducing the liquidity of export oriented sectors. Increasing prices of raw materials, high banking service charges, high export refinance rates and the uneven taxation system are added reasons for falling exports.

Exporters want electricity and gas tariffs to be reduced and that the export sector should have a separate head of account in the tariff structure. They also want export-oriented industries to be ensured with a regular supply of all utilities to run the manufacturing units without any interruption.

Another complaint of theirs is that trade organisations are not consulted during the preparation of policies and neither are their recommendations included in decision making. Sales tax refund claims are pending approval. They say any delay in implementing the zero-rating regime would not only make it difficult for exporters to meet targets it would also make things worse for the already deteriorating sector.