Costly export finance would undermine the benefits of zero rating and other incentives for export promotion launched by the government in the recent budget. Coupled with hike in shipping freight and trade tariff barriers, the burden on Pakistan's textile export would render the exports uncompetitive in international market.
These views were expressed by Faiq Jawed, chairman Pakistan Textile Exporters Association (PTEA), talking to newsmen here on Saturday.
"The country's exports are confronted with variety of odds at the very beginning of the new open market international trade regime after the textile quota phase out," he said. Pakistani exporters started the new era with a handicap of 25 percent comprising 13.1 percent anti-dumping and 12 percent GSP duty withdrawal, he elaborated.
"Resultantly, our bedlinen exports to Europe went down by 11 percent in the first three months of the current calendar year and now when the exports were just picking up the cost of petroleum products have been hiked," he said, adding, "the petroleum price raise has unleashed a chain reaction and the shippers have increased freight rates taking plea that prices of oil in international market have crossed the $60 per barrel."
"Industry and exports are at the receiving end as the cost of inputs further escalates the production cost and ultimately, the export price is making Pakistani textiles uncompetitive compared with our rivals," the PTEA chief pointed out.
Faiq Jawed said that a sizeable portion of the Pakistan's market has been captured by China with comparatively cheaper products and the Pakistani exporters apprehended further setback in the wake of rising cost of inputs and cost of export finance.
Faiq Jawed demanded that the rate of export finance be brought down as was the case about a year back, which would greatly help the exporters to retain their foothold in the international market.