Reduction in protective duties, zero-rating of exports and continuity of R&D facilities are expected to be main feature of the new 'textile package' being announced in the forthcoming budget. This was stated by Pakistan Textile Exporters Association (PTEA) Chairman Mian Zahid Aslam, while talking to journalists here on Wednesday.
He said the new Textile Package would go a long way to stem the declining trend in exports of fabrics and home textiles. Pakistani exports were facing tough time in international market against India and China causing declining trend in our exports, he added.
Resultantly, the exports of these items declined by 6 percent for the 10 months of current fiscal. From July to April in the current fiscal year, a period of 10 months, exports of fabrics were $1,678 million as against $1,787 million in the same period last year, showing a deficit of $109 million.
Similarly, exports of bed-wear were $1,600 million for 10 months period of the current fiscal year as against $1,667 million of the same period last fiscal year, indicating a deficit of $67 million, he said.
Pinpointing the main factors for this negative trend in exportable items, Zahid Aslam blamed for the rise in cost of production, increase in gas and electricity rates, protective duties on raw material and variety of levies and taxes on exports.
He said rival countries were providing various facilities to their exporters. Our demand with the government was not for any subsidy or incentive, but we were demanding only level playing field, zero-rating exports and continuity in R&D facilities.
The government finding weight and substance in Association's pleas, has assured to make necessary announcement in the forthcoming budget. With the provision of these facilities the positive progress would be visible on the export front, he concluded.
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