Export orders worth $78 million are hanging in balance as buyers are hesitant to purchase high priced textile fabrics from Pakistan. European and American storehouses and departmental outlets planning their Christmas inventories have been persuaded by Pakistani exporters to see the outcome of parleys with the government on the extension of Research and Development Support.
They say this facility would partially offset the anti-dumping duty and high tariff businesses against Pakistani textiles, making them viable and competitive. The Pakistan Textile Exporters Association (PTEA), in an urgent communication here today to the Finance Minister and the Textiles Minister sought the immediate issuance of the necessary notification regarding the extension of Research and Development Support Facilities. They pointed out that the country is losing huge amount of foreign exchange due to the reluctance of foreign buyers and export orders would be diverted to India, Bangladesh and China.
PTEA Acting Chairman Muhammad Naeem reminded the ministers that they promised during meetings in Islamabad on the 17th of July that the government would issue the notification in two to three days.
They added that over a week has gone by in which no practical measures have been undertaken. Foreign buyers would not wait long and the country would suffer an irretrievable loss, as traditional markets would go out of hand, the communiqué lamented.
Faisalabad textilers resorted to an indefinite strike and shutdown industrial activity on the 10th of July in protest against the gas price hike and sought an extension of R&D Support facilities on fabrics, home textiles and made-ups. The protest was widespread and joined by the local chambers of commerce, the sizing industry, processing mills, power looms and ancillaries. The protest however was called off after the intervention of the Prime Minister and his assurance that the government would redress the grievances through negotiations.
A delegation of the PTEA and other groups met with the Prime Minister during his last visit to Lahore on July 15th and later held marathon sessions with the Textile Minister and the Finance Minister in Islamabad. The exporters, justifying the necessity of the R&D facility for export s and the sustenance of industry made detailed presentations on the issue.
They said this would countervail the tariff and non tariff barriers raised by USA and Europe against Pakistani textiles and help with the escalating cost of production caused by intermittent hikes in the prices of raw materials, gas, electricity and petroleum. Both the ministers were fully convinced and promised to issue necessary notification within 2-3 days. Since then every thing is in abeyance and the despondency of exporter is on the rise.
The exporters also expressed concerns over the blockage of funds in R&D claims lying with the State Bank of Pakistan. They said that on account of minor objections, the claims refused to be entertained by the State Bank on the sudden cut off date of 28th June.
Furthermore, they said legally valid claims until 30th June 2008 are still pending, due to an arbitrary cut off dues ex-machina. The textile exporters warned the government that with each passing day, huge losses of forex, government revenue, industrial productivity, human resource wastefulness and national image are occurring.