FAISALABAD: “The rising cost of doing business over the last several years has stalled fresh investment in the textile industry and hampered export growth & turnover.
The government should devise a comprehensive strategy to counter the issue in order to accelerate the industrial pace and save the livelihood of millions of workers.”
This was stated by the newly elected Chairman of the Pakistan Textile Exporters Association Sohail Pasha during the annual general meeting of the Association here on Saturday.
The meeting was presided over by the Chairman PTEA Arif Mahmood Qureshi and participated by a large number of exporter members.
Addressing the members, newly elected Chairman Sohail Pasha said that in prevailing economic conditions, Pakistani exports are under pressure due to the economic and industrial crisis in the country as well as the persistently high cost of production. The heavy burden of taxes and high energy cost is badly affecting the industrial and trade activities and productivity output.
Expressing concern over the continuous downfall in industrial production, he said that the export sector has been experiencing a troubling trend of negative growth right from the beginning of the ongoing fiscal year as the economic slowdown had restricted the growth pace.
Due to the inefficient and unfriendly socio-economic environment, the cost of doing business in Pakistan has escalated enormously. The intermittent rise in energy inputs and raw materials has rendered our exports uncompetitive in the international market.
The government, instead of re-designing the export policies for reversal of further catastrophe, is taking counterproductive measures.
Referring to the recent tax changes under the Finance Act 2024, he said that the additional disadvantage compared to regional competitors is stifling the growth and expansion of export-oriented industry in Pakistan, prompting businesses to seek growth opportunities outside the country.
Export opportunities arising from a business shift from Bangladesh will be captured by other regional players. He emphasized the unity of the textile sector to force the government to focus on consolidation and strengthening of the economy and uplifting the industrial productivity in the country.
He appreciated the successful efforts of the outgoing team in resolving the issues confronting exports. He assured that PTEA will continue the efforts for the viability of textiles in the international market.
Earlier the outgoing Chairman PTEA Arif Mahmood Qureshi, presenting his annual report said that despite the turbulent economic environment, the Association continued its efforts to put the business on the path of economic diversification and growth by enhancing its value proposition. This year, we envisioned the idea of striving towards pro-business reforms to ensure a favorable environment that is conducive to growth, boost productivity, and enhance competitiveness with regional rivals in international markets.
To achieve the same, we worked closely with the Government quarters and all relevant flora to build mutual grounds for the betterment of the textile industry in general and textile exporters in particular.
Copyright Business Recorder, 2024
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