Realisation of export proceeds: Pak Apparel Forum demands govt restore 180-day limit

KARACHI: Pakistan Apparel Forum (PAF) on Wednesday demanded restoration of the Stats Bank’s previous procedure for the export realization time limit of 180 days, instead of the revised one of 120 days.

It warned that otherwise the value-added textile export is likely to face “severe downfall”. The PAF also singled out the PDM’s federal government’s “ignorant conduct” for making the textile exports unviable on the world markets.

“All meetings (of textile sector) with PM postponed during last six months,” Chairman, Pakistan Apparel Forum, Jawed Bilwani said that the premier and finance minister have not time to meet with the textile exporters.

He said this sector is on the verge of a closure and warned that the unviable textile exports are feared to trigger “massive layoffs” in the industry. During the period, 918 export businesses have shut down their manufacturing, he added.

The value-added textile exporters are highly perturbed over the government’s step-motherly harsh behaviour despite being the foreign exchange earners for the country amid the difficult economic era, he said.

“Instead of calling on genuine and real stakeholders, the Prime Minister, Finance Minister and their Economic Team are calling their favourite business persons for consultation on Budget 2023-24,” Bilwani said.

The businesses and exports of a few ‘blue-eyed’ businessmen have greatly flourished whereas the country’s export is stagnant and revenues are falling, he said.

“The SMEs are struggling for their survival having no representation and no say in the government,” he said that this “broad discrimination” has shaken the confidence of small and medium textile exporters.

“The State Bank has also made harsh regulations on the dictation of the government to squeeze export and exporters by penalizing them in shape of heavy penalties,” he said.

On the other hand, he said, the importers have been given a complete liberty to make imports on a deferred payment of 365 days. He blamed the government’s “unwise and “imprudent” policies for the challenges, which the value-added textile sector is facing.

He said that the government’s policies have pulled down the textile industry into a “deep unviable situation” near to a closure to cause massive layoffs with a “sharp” decline in export and foreign exchange earnings.

He dismissed a perception that the exporters deliberately hold or delay their remittance abroad. He called the perception about exporters incorrect.

“There are few exporters who have their offices abroad may be involved in such inappropriate delays while the majority of exporters timely bring their remittance to Pakistan,” Bilwani said.

He questioned the government’s policy of a collective penalization of a majority of exporters for the unethical activity of a few. He urged the government to single out only those for penalties, who are found guilty of holding remittances abroad.

The prime minister and finance minister are unable to hold a meeting with the country’s exporters, whereas Indian premier is meeting one-on-one with the CEO of Wal-Mart - the biggest buyer of textile worldwide, he said.

He said that the Indian government and its economic team is pursuing the charter of “Make in India”, lobbying and influencing for the appointments of Indian on top positions in the leading global brands to shift their businesses to India.

“Recently, Nike has appointed an Indian as Head of Sourcing who will shift the existing business of Nike in Pakistan to India,” he said.

The government’s political “vendetta” and “wrangling” between parties have made the global buyers refuse to place their orders with local exporters, besides cancelling their existing deals, he said.

The foreign raw material suppliers, who are engaged with the local textile makers-cum-exporters have asked them to open their LCs in the UAE for fresh shipments instead in Pakistan because of the pathetic economic conditions in the country at the hands of the sitting government, Bilwani said.

The news media’s bleak projection about the country’s economy has met with a default like situation to have created a “very” negative impression among the foreign buyers, who are now shy to strike deals with the Pakistani exporters, Chairman PAF said.

Over the past 13 months of the PDM’s government, he said that the country’s textile exports have been ruined. He felt that as if the country’s textile export sector is marching towards its collapse.

Despite repeated calls for a help by the apparel exporters to the prime minister and finance minister, he said that the country is facing a “disastrous economic turmoil” in the history of Pakistan.

“All the political elements, as well as, the government are equally responsible for this financial fiasco,” he said that this government cannot escape from the responsibility to revive the economy in the national interest.

Copyright Business Recorder, 2023