Prgmea chief for utilising all resources to arrest export slide

Chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Shaikh Mohammad Shafiq, has pointed out that Pakistan's major competitors such as India, Bangladesh and China are utilizing all the channels and resources for capturing the world market. "Under the prevailing situation we need to opt for similar approach to survive well in the market," he underlined.
He said that the exports fell by 12.11 percent from $23.667 billion to $20.802 billion in the fiscal year 2015 - 2016. The imports increased by 2.27 percent, standing at $4.467 billion in June 2016 compared to $4.368 billion in June 2015. In the recently announced budget for 2016-17, the Finance Ministry gave some incentives of rebate and zero-rated sales tax to top five important textile sectors to enhance their exports in the next two years, but surge in yarn prices by almost 25 percent hit the apparel sector badly.
Cotton yarn prices have increased by around 25 percent to Rs 11500 per bag of 100 pounds from Rs 9950 during the last one and a half months due to cartelization of local manufacturers who are taking advantage of 10 percent additional regulatory duty on import of yarn.
He demanded of the government to abolish additional regulatory duty on cotton yarn that should be imported freely from anywhere, as it is hitting the whole value-added apparel sector especially due to limited availability of cotton which is being exported without any hindrance. He further said that value-added industry was already suffering with the low productivity due to shortage of cotton, high energy cost, and discriminating import duties on the industry's raw material.
The Prgmea chairman said that regional comparison of cost of doing business shows that Pakistan's wages, interest rates, electricity, gas and water tariff were much higher and created hurdles for smooth business. Despite certain hurdles, the business community engaged with value-added industry was making strenuous efforts for enhancing the export in the larger national interests.