ISLAMABAD: The country’s textile and leather industry has termed high electricity tariff, unsustainable taxation and liquidity crunch as some of the key factors which are hurting exports.
The textile-related industrial sector shared its concerns with Commerce Ministry team led by Minister for Commerce Jam Kamal Khan in a virtual meeting held on Wednesday.
The relevant MoC officials interacted with members of Council for Apparel, Made-ups, and Technical Textiles, alongside the other Councils representing Textile Fibers, Yarns, and Fabrics with a focus on addressing critical issues impacting on the textiles and apparel industry, a cornerstone of Pakistan’s economy.
‘Textile sector exports struggle amid harsh taxation, high energy costs’
The members of both councils pointed out several impediments hindering exports, including high energy tariffs, unsustainable taxation, liquidity crunch, complexities surrounding Statutory Regulatory Orders (SROs), limited export financing with high borrowing cost, and tariff-related challenges. Participants in these meetings urged the government to sort out these issues and take necessary measures, which they believe are crucial for maintaining the export momentum.
The meeting also touched upon the need to support small and medium enterprises (SMEs) and the establishment of new plug-and-play garment cities, which are seen as essential for fostering growth in the sector.
The Council members emphasised that, given the current geopolitical situation, Pakistan has a unique opportunity to capture a larger share of the international market. They urged the government to capitalise on these circumstances by implementing policies that would bolster the country’s value-added textile exports.
The minister acknowledged their point of view and that these issues must be addressed to streamline the sector, enhance its global competitiveness and boost exports.
Jam Kamal further noted that Pakistan is one of the few countries in the world with a complete textile and apparel value chain and acknowledged its contribution in socioeconomic development of the country.
He assured the council members that their concerns would be voiced at the highest levels of government. He also expressed his personal commitment to reviewing the recommendations from the 16 sectoral councils, stressing the importance of true representation from the private sector in these consultations.
“The prime minister is continuously deliberating ways to enhance facilitation for exporters and increase trade volume,” said the minister.
He appreciated the quality input provided by the private sector during these meetings, which will be instrumental in shaping the future policies. The recommendations from these discussions will be compiled and presented to the National Export Development Board (NEDB) for final consideration by the prime minister.
Jam Kamal Khan, also held a meeting with the Pakistan Leather and Footwear Council, marking what he described as the first time a federal minister has actively engaged with this sector’s council.
The minister urged the council, along with 15 other sectoral councils, to submit their proposals and recommendations. These will be presented to the National Export Development Fund, chaired by the Prime Minister, for consideration and approval.
Copyright Business Recorder, 2024
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