Islamabad
The Pakistan Hosiery Manufacturers & Exporters Association Central Chairman Shahzad Azam Khan has said that any imprudent and unwise decision of the government to discontinue concessional power tariff for five export-oriented sectors will be disastrous, damaging relentless struggle of the exporters to enhance exports volume.
In a joint statement along with Chief Coordinator Jawed Bilwani, Zonal Chairman (North) Kashif Zia, Zonal Chairman (South) Abdul Rehman and Executive Committee Members, the PHMA central chairman said that textile exports are at the top with $15.4 billion exports in 2020-21 which is now going to surpass the figure of $15.98 billion in just 10 months of 2021-22 with a notable enhancement of over 25 percent. He observed that knitwear in textile group has also achieved highest growth in exports which was $3.8 billion in 2020-21 and has now touched $4.2 billion in 2021-22 (10 months) with an increase of 35 percent.
The PHMA in its Executive Committee meeting discussed the current economic situation of the country and also passed resolution to make all out efforts to further enhance value-added textile exports to support the government and heal the economic turmoil by earning more foreign exchange. PHMA also cautioned the federal government to desist from any unwise move which may sabotage the hard efforts of exporters to enhancement in exports, asking the Prime Minister and his economic team to ensure level-playing field by providing concessional energy tariffs and Duty Drawback on Local Taxes and Levies as committed in the new five year textile and apparel policy.
PHMA urged the federal government to continue supporting the “Five Export-Oriented sectors” for sake of economic stability, employment creation and revenue generation in the national interest.
Shahzad Azam Khan said that value-added textile exporters want continuation of grants by the government to provide concessional energy tariffs to ensure level-playing field to export industries for the purpose of regional competitiveness and export enhancement. In fact the industries are also burdened and cross-subsidized for gas tariffs to give subsidy to fertilizer & domestic sector. The fertilizer sector is earning huge profits in excess to subsidy amount nonetheless the benefit has not been passed on to growers in the name of food-security. Exporters have cautioned the government that any thoughtless move must be refrained which will bring any negative impact on exports and concessional energy tariff for export industries must be continued with immediate provision of additional budgetary allocation. Otherwise, in view of unviable cost of manufacturing, exports will suffer and the Prime Minister and his economic team shall be solely responsible for export decline and further depletion in forex reserves.
In present outlook, only exporters are at the front to bring dollars to Pakistan. The Value-Added Textile Export Industry is battling hard in the wake of stiff competition from regional competing countries.
Shahzad Azam said that the concessional energy tariffs must be frozen for at least one year, as the textile export sector has to make commitments for six months in advance and as such any abrupt change will jeopardizes their entire planning and they suffer huge losses to keep up commitments to their foreign buyers.
The PHMA leadership appreciated the noteworthy efforts of the Federal Commerce Ministry which has worked hard to enhance exports and facilitate businesses and due to the Ministry’s support and facilitation the businesses were advancing towards excellence. However, the Commerce Ministry efforts must not go futile with any uncalled-for intervention from any other ministry. Inter-ministerial harmony and cohesion must go on to support the national economic charter and export enhancement.
