The knitwear industry has expressed shock over the government decision to reduce duty draw back on export of knitted garments by 2-percent. Chairman of Pakistan Hosiery Manufacturers Association, Adil Butt, said in a statement here on Friday that this step would discourage the growth of knitwear exports.
On the one hand, the government is taking positive steps to promote exports through fiscal and administrative measures which have been hailed by business community, while on the other hand, negative steps are there to neutralise the effects of promotional steps.
According to him, knitwear industry has registered tremendous growth over the last few years through earning precious foreign exchange for the country. Along with this contribution, it is the largest employment-providing sector. It produces and exports highly value added products in the textile sector and stands at No 1 in the items exported from Pakistan, he added.
He demanded that the decision to reduce duty draw back may be reconsidered in the wake of prevailing international competition and the market forces working against our exports.
After end of quota regime the free market access to every country has broadened the scope of competition in the world markets and the price war is badly hitting to our exports which are already only a very small fraction of international trade volume, he said and added it is need of the hour that instead of pulling back the forward moving sector, the government should provide further supportive measures.
He urged upon economic management of the country to review this decision and take into confidence the stakeholders before making such decisions.
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