Secretary Textile Hasan Iqbal has said that Prime Minister Export Package was announced after deliberation with all stakeholders and associations and a package of Rs 180 billion was approved out of which Rs 140 billion was allocated for export while 40 billion was allocated for rebate/custom duty and other incentives.
Addressing the gathering of exporters and representatives of value-added textile associations gathered at Pakistan Hosiery Manufacturers & Exporters Association (PHMA) House on Thursday he said that package was planned to be spread over 18 months. Up to 30th June, 2017 Rs 8 to 9 billion of claims were received and the government has paid Rs 3 billion by 30th June. Whereas 26th July, another amount of Rs 4 billion, has been released by the Finance Division.
Hasan Iqbal was delighted to communicate that during the month of June, 2017 exports has been increased to 16 percent over June, 2016. He lamented that export activities were hampered during the month of May, 2017 due to strike of transporters which affected the export shipments. In respect to various suggestions to enhance exports, the Secretary sought proposals from PHMA and Pakistan Apparel Forum (PAF).
He appreciated that cotton crop has been increased and cotton cultivation has been expanded in Punjab and have also started in KPK and Balochistan. The government is committed to facilitate Value Addition in exports and believes in providing level-playing field. In this connection, the ministry has forwarded his recommendations to Commerce Ministry in respect to rationalization of Utilities Tariff at par with regional countries, he added.
He informed that ministry of textile is spearheading with the government of Sindh in respect to establishment of five combined effluent treatment plants in industrial areas of Karachi which will result almost 50 percent compliance to GSP plus conformance.
Secretary Textile assured that all the complaints received at the level of the ministry shall be disposed off the same day. He informed that the textile ministry was having meetings on monthly basis with the FBR in respect to timely release of refunds to textile exporters. He also assured to PHMA to look into the time-barred claims of exporters.
Earlier addressing the meeting Muhammad Riaz Ahmed, Zonal Chairman PHMA, said that to unearth reasons behind export decline the government should take on board all stakeholders particularly the associations as the exporters as they can very well explain about the cause of decline in exports. Hiring of Consultants to explore the reason of decrease in exports shall a futile exercise and waste of precious funds from EDF, he added. Prime Minister Export Package implementation is crucial to uplift exports and the government should take on board exporters to redress their problems to achieve a milestone in country's exports, he urged.
Muhammad Jawed Bilwani, Chief Coordinator PHMA & Chairman, Pakistan Apparel Forum appreciated the supportive role of Ministry of Textile Industry headed by Secretary Hasan Iqbal. Bilwani in his presentation gave a synopsis of last two decades of textile exports and highlighted the issues and problems faced by the value-added textile sector which contributed $11.08 billion (53 percent of total exports and 89 percent of total textile exports) and generates 42 percent of the total employment including female workers.
He informed the meeting that in 1990, textile exports of Pakistan stood at $3.67 billion, Bangladesh $0.98 billion and India $4.71 billion and in 2016 the export of Pakistan stood at $12.45 billion with 239 percent growth; Bangladesh $30.24 billion with 2,985 percent surge and India's textile exports are $36.63 with 677 percent growth. He said that in 1991, cotton production of Pakistan stood at 11.5 million bales, India at 10.6 million bales while in 2016 Pakistan stand at 10.7 million bales with 6.9 percent decrease, India stands at 34 with 220 percent growth.
He stated that the government has been time and again communicated about manifold challenges and problems confronted to exporters particularly liquidity crunch amid inordinate delays in refunds of Sales Tax; DLTL; DDT; Custom Rebates and we have demanded to released refunds forthwith. It is satisfying to note that Rs 3 billion were released under PM Export Package whereas Claims of Rs 7 to 8 billion have been processed by the SBP whereby the Central Bank is waiting for funds from Ministry of Finance to disburse payment to exporters accordingly. He also urged that all the matters related to exports and exporters shall be dealt by Federal Government and there should no intervention at level of provinces.
He voiced that exporters major demand to the Government is that the tariff of Electricity, Gas, Water and Wages the major inputs be brought at par with regional countries so that the exporters be able to compete in the Global market. On this occasion Rafiq Godil, Chairman, PAKSEA; Khawaja Usman, Chairman, PCFA; Saleem Parekh, PHMA; Sohail Ahmed, APBUMA; Aslam Karsaz, PHMA also participated in the meeting.