The Vice Chairman of Pakistan Hosiery Manufacturers Association (PHMA), Zia-ur-Rehman, has urged the government to take immediate steps for protecting the industry from total collapse.
Addressing a press conference here on Friday, he said that the world's second biggest industry, sportswear, which has groomed in Sialkot with exports of $100 million, is under in the clutches of many crises, as a result of which its exports have been decreased 21 percent.
Due to the defective and weak policies of the government the business community was adversely suffering owing to high prices of raw materials, high tariff of utility bills, heavy provincial and federal taxes and severe energy crisis the growth of industrial sector is on the decline, he pointed out. He said that despite these problems the exporter community of this export-oriented city and hub of cottage industry of the country was competing in the global market.
The businessmen engaged in the industry are shifting their business to Bangladesh and Dubai. This is should be an eye-opener for the government, and if the situation remained the same Pakistan will lose huge foreign exchange as well as market, he said.
Zia suggested that that the government should adopt appropriate measures for discouraging the shifting of business to foreign countries through the implementation of hurdle-free and highly flexible policies and exporters should be given free hands for doing business without any hurdle.
He said that the prevailing political situation and uncertainty the foreign buyers are reluctant and heisting in placing new orders to Pakistani exporters he added. It is high time that government should simplify its trade policies and unnecessary restrictions should be abolished for the larger national interest, he added.
The Vice Chairman said that the recent announcement of State Bank of Pakistan imposing 35 percent margin on letter of credit would not only shattered the economy but also adversely affect the SMEs adding that in order to facilitate the SMEs State Bank should bring down the LC margin to zero percent.
He further suggested that government should allow exporter community to import raw material for catering their industrial needs. Zia underscored the need of continuation of Research and Development support to Textile sector and this support should be increased to 10 percent from 6 percent for the larger interest of textile industry. The worst law and order situation of the country is badly affecting the industry and creating harassment for the foreign buyers he added.