The Pakistan Textile Exporters Association (PTEA) has expressed grave concern over heavy import duty of 35 percent on Pakistani grey fabrics and 52 percent on garments by Turkish authorities. This exorbitant hike is most unfriendly and damaging act for Pakistani textiles, it said.
Talking to newsmen, Waseem Latif, Chairman, and Adil Manzoor Elahi, Vice Chairman of PTEA expressed disappointment over the Turkish government move and said that on the one hand the Turkish government was negotiating expansion of mutual trade with Punjab government and exploring areas of investment and, on the other hand, heavy import duties were being imposed on fabrics and garments. "What is most pinching is the raise to 35 percent duty on fabrics and 52 percent duty on garments which is highly excessive and quite arbitrary.
This unprecedented hike not only negates the international trade norms but is also in violation of World Trade Organisation regulations," they added. The PTEA leaders said that Turkey was an important destination for Pakistani textiles as it was also a vital link with European countries on international trade routes. Pakistan is presently exporting $341.6 million textiles to Turkey and has been a major stakeholder and main supplier of semi-finished textile goods, finished textile goods, and textile manufacturing units to Turkey.
The imposition of heavy import duty would be a huge setback to Pakistani textiles, they opined. "This move of the Turkish government has come at a time when Pakistani textiles have already been struggling to gain market access to EU and American markets," they said.
Pakistani textiles, they pointed out, were already being subjected to 18 percent import duty in USA and 9.6 percent import duty in EU. With the imposition of 35 percent and 52 percent duty by Turkey, Pakistani textile exports would come under huge pressure, they apprehended.
The PTEA leaders said that Pakistan's economy is heavily dependent on textile sector, which is not only the largest job providing industrial sector but was also contributing maximum share in the export, which remained around 60 percent over the years.
The country's textile sector was already frustrated with the delay in the import duty concession from European Union (EU) to provide relief to textile products of crisis-stricken countries, received the latest move of Turkey as another blow to struggling export sector, they added. This decision not only poses concerns for the current fiscal exports target of the country but also reduces the Pakistan's looms production, which is already facing worst ever energy crisis, they said.
They criticised the unbridled raise of import duty and levies and termed these tariff barriers against international trade norms. The PTEA leaders demanded that a high level government delegation should immediately take up the matter with Turkish government and apprise it of the far-reaching negative impact of this move on Pakistani textiles and economy.
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