Unilateral increase of 12 percent in the cargo fare by shipping lines will not only make the exports costlier but also render the same uncompetitive in western markets, apprehended Rana Arif Tauseef, Chairman Pakistan Textile Exporters Association (PTEA).
Talking to newsmen here on Monday, the PTEA chairman said that Pakistan Textile products were already under stress because of continuous increase in its production cost in addition to other internal and external factors.
"It was indicative for the export figures of last three months", he said and added that rise in the prices of electricity and petroleum products have made our exports uncompetitive in the international markets as compared to our rivals.
He said that Pakistani products had been competing with the same products of other countries in spite of souring prices of utilities in addition of 13.1 percent anti dumping duty and withdrawal of 12 percent GSP concession.
He said that recent increase in freight charges at this crucial stage was very alarming and would further erode the profitability of textile exports.
He pointed out the decrease in the volume of textile export during the first quarter of this financial year and said that Pakistan exported 328 million square meters cloth during June. In July, it was reduced to 302 million square meters and in August it was further deceased to 273 million square meters with continuous decreasing trend in September 264 million square meters.
He said that increase in freight fare would have a negative impact on already dwindling exports. He, however, requested the government of Pakistan to take necessary measures to decrease production cost to help Pakistani products compete in the international markets.