Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

PTEA seeks government's intervention to boost growth

slide-1-638

Pakistan's textile industry has lost its viability against regional competitors. Facing tough times the Pakistan Textile Exporters Association (PTEA) has sought government's intervention to tackle the situation. Production costs are at a comparative disadvantage in the country.

 

It’s tough times for industry 

d30a3e5fbaa6e66be87ca0836e5fcc83

Sohail Pasha, Chairman Pakistan Textile Exporters Association, points out that due to unfriendly and inefficient socio-economic environment, the cost of doing business in Pakistan has soared tremendously. This is because of the constant rise in raw material prices and production inputs that in turn renders the country’s exports uncompetitive in international market. Competing countries have an advantage and are making in-roads in traditional markets, pushing Pakistan textiles out.In Punjab particularly, the textile industry is in a crisis since long and is struggling to survive. High production costs coupled with energy constraints have put a stop to the industrial wheel and disturbed the competitive edge of textile exports. Regional rivals have grown their exports with government’s support, increasing their market share in global textile trade. From 2008 to 2013, Bangladesh achieved 160 per cent growth in textile exports, while China achieved 97 per cent and India, 94 per cent. However, Pakistan’s growth remained at 22 per cent. The statistics show Pakistan’s global textile trade had dropped from 2.20 per cent to 1.80 per cent.

 

Energy shortage is another major bug bear. Besides, the cost of doing business too has risen and there’s a burden of incidental taxes, provincial cess, inefficiencies in the system and withholding tax regime has made it more difficult for the industry.

Need for government intervention

PTEA chairman feels that the government needs to provide a level-playing field to double existing share in global textile exports. He cited an example such as incentives under technology upgradation fund scheme, focus market scheme, focus product scheme and export goods scheme that are available to Indian textile exporters.

 

PTEA also urged the government to look into this seriously and step up to save the forex earning sector from disaster. Two main factors as stated, energy crisis and high cost of doing business are keeping back this mainstay of the national economy from optimum growth. Thus, uninterrupted supply of gas and electricity at regionally affordable rates, liquidation of all pending refunds, removal of all innovative taxes and restoration of zero rating regime for textile export chain should be ensured by the government. This would help restore the competitiveness of the industry.

 

 

 

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo