Stuck up amounts of exporters in refund regimes, energy shortage and lack of competitive edge in international market are major challenges hindering export growth and without tackling these core issues, textile industry could not get the momentum.
The government should devise a comprehensive strategy to counter these issues not only to resume the industrial pace but also to save livelihood of millions of workers.
This was stated by the newly elected Chairman of Pakistan Textile Exporters Association (PTEA) Sheikh Asghar Ali during annual general meeting (AGM) of the Association here on Tuesday.
The meeting was presided over by Chairman PTEA Sohail Pasha and participated by a large number of exporter members. Addressing the members, newly elected Chairman Sheikh Asghar Ali said that Pakistani exports are under pressure due to prevailing economic financial, industrial crisis in the country as well as persistently high cost of production, heavy burden of taxes, energy crisis and lack of working capital which are badly affecting the industrial and trade activities, the productivity output and the situation is going from bad to worse. He emphasised the unity of textile sector to enforce the government to focus on consolidation and strengthening of economy and uplifting the industrial productivity in the country. He said that billions of rupees of value-added textile exporters are stuck up with government departments in sales tax, special excise duty and custom rebate regime creating liquidity crunch, hampering the export growth and turn over. In prevailing economic conditions, rising cost of production is the core issue for textile exporters and shortage of energy is adding the fuel on fire, he said. He appreciated the successful efforts of outgoing team in resolving the issues confronting exports. He assured that PTEA will continue the momentum for uninterrupted supply of gas and electricity for export-oriented textile industry and move for viability of textiles in international and local market will also be continued till desired results.
Earlier Sohail Pasha, Chairman PTEA, presenting his annual report said that textile industry, particularly in Punjab remained in grip of unprecedented crisis due to severe energy crisis and uncertain economic conditions during the year. Economic and industrial crisis cast its long shadows on Pakistan economy as wheels of industry have come to a halt. Energy shortage and intermittent increase in energy tariffs coupled with high rate of taxes and levies increased the cost of production severely hitting the competitive edge of Pakistani textile exports in international market.
Lack of working capital further complicated the situation; consequently, sizeable textile capacity had been severely impaired and country's exports are observing continuous decline both in quantity and value terms. Notwithstanding the fact that Pakistan's economy has lost a significant momentum, our exporters have held their ground against heavy odds and achieved the export targets.
Addressing the occasion, newly elected senior vice chairman of the Association Rizwan Ihsan assured that no stone will left unturned for promotion of exports and industry. Exporter's problems will be taken at all possible levels and efforts will be done to get solved the issues.
Later, shields and photo albums were presented to the outgoing chairman, senior vice chairman and vice chairman. Large number of textile exporters attended the meeting.
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