Strategic Trade Policy Framework: government asked to make early announcement

13 Feb, 2016

The All Pakistan Textile Mills Association has called for an early announcement of the Strategic Trade Policy Framework, warning that an undue delay could push textile industry exports further down. Chairman Aamir Fayyaz has said, "Already textile exports have been reduced by 14 percent over the past six months. If this downward trend persists, it could lead to a reduction of $3.5 billion in exports by the year-end."
He also speaks of a possible cotton crop failure in the Punjab, saying, "It has resulted in a $1.5 billion loss to farmers, and the total loss could reach $5 billion with the addition of loss in exports." He said, "The country will be losing more than what it is borrowing from the International Monetary Fund. Regional competitors including China, Bangladesh and India are filling up their coffers with foreign exchange earned out of exports, and not the bank loaner."
He also said his association had put forward six points to the government for strengthening exports. He said, "The government should understand that a downward trend will be irreversible if continues unabated as buyers will not return to us. It will be next to impossible." He said his association too had asked for a competitive energy pricing.
He then welcomed a government agreement with Qatar on RLNG import and urged the government to shun restricting announcements and implement the price of $5.5 per MMBTU. "We are expecting provision of RLNG at $6 per MMBTU to the industry to make us competitive in the region," he added. He has also demanded payment of Rs 100 billion refunds of the textile industry still with the Federal Board of Revenue.

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