The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has expressed concern over shifting of woven garment units to Bangladesh and urged the government to take measures in order to discourage this trend.
The spokesman PRGMEA said that a large number of Pakistani woven garment manufacturers and exporters were planning to set up their businesses in Bangladesh while a few have already established their businesses there. He said the pro-industry policies of Bangladesh and trade concessions from the West were attracting Pakistani businessmen.
The spokesman said that Bangladesh was providing 11 percent drawback on export of readymade garments to its exporters. He added that not only Bangladesh but also other competing countries including China and India were offering heavy drawbacks to their woven garment industry. He said China was offering its exporters export rebate at 17 percent on various garment items. In 2010, China's export tax rebates totalled 732.7 billion Yuan ($113.3 billion), registering an increase of 13.
He deplored that the Pakistan government, on the other hand, has withheld Drawback of Local Taxes and Levis (DLTL) scheme from July 2011 onwards. He said that the DLTL scheme was vital for the survival of exporting units in a situation when Pakistan is facing double-digit inflation besides ongoing unprecedented energy crisis.
The spokesman has urged the Ministry of Textile, Ministry of Finance and Chairman Federal Board of Revenue (FBR) to act immediately and resume the DLTL scheme to encourage the woven garment exporters to continue with their businesses in Pakistan. He said the DLTL scheme has played vital role in boosting textile exports to the historic level of $14 billion in 2010-11 besides employing 45 percent of the total workforce in the country.
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