Former Chairman of Korangi Association of Trade and Industry (Kati), Shaikh Manzar Alam has urged the government to initiate negotiations with the European Union so that Generalised System of Preference (GSP) could be extended to the goods being imported in the EU from Pakistan
In a communication to the federal ministers for finance and commerce, he said that GSP issue remains unresolved and the duty-free access to the EU is still awaited, due to which the import of apparel from Pakistan has to undergo a heavy duty package of about 9.6 percent in the EU.
He pointed out that after implementation of WTO rules on January 1, 2005 and abolition of quota regime, the EU and North American customers are now free to buy goods from anywhere that wanted. Pakistani exporters are facing big hurdles in getting bulk orders from the EU, which they should and which they deserve and which is required to run the industry efficiently and smoothly. Manzar noted that majority of orders are being shifted towards neighbouring countries including India, China, Sri Lanka and Bangladesh.
He said that the prices of utilities should be reduced at least for the textile export-based industry, and be capped for a period of at least two years, so that the textile manufacturers and exporters could quote the price to their customers for at least one year.
He pointed out that no buyer in the world accepts frequent and rapid upward revision of prices. He said that the cost of doing business in Pakistan is going up every day and due to this, Pakistani textile exporters are not getting a level playing field.
Manzar Alam said that the mark-up rate has gone more than four times in last few years, which is adding to the woes of already ailing industry. He urged the government and the State Bank of Pakistan to reduce mark-up rate, so that export oriented units could get some relief.
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