INP
LAHORE
Chairman Textile Traders Association (TTA) Sheikh Abdul Mannan has stressed the need for fully availing the preferential market access by the EU countries for textile products under the GSP Plus scheme with a view to further bridge the trade as well as current account deficit (CAD) which has contracted by 27 percent to $11 billion during the first 10 months of the current fiscal year due to favorable policies of the government.
Though the trade deficit of Pakistan has widened over 22 percent to $2.66 billion in April 2019 because of increase in imports, particularly the expensive petroleum products.
The newly-elected chairman of the TTA Sheikh Abdul Mannan said the textile sector is one of the most important industrial sectors of Pakistan as it is not only the highest foreign exchange earner but also employed 40 percent of the country’s industrial workforce.
He appreciated the government for taking measures to develop the textile sector through various support schemes, policy interventions and capacity building.
Sheikh Abdul Manan mentioned that the Textile Policy 2014-19 is addressing the issues of all the sub-sectors of value-chain by laying down a comprehensive plan for the sustainable growth for the industry.
He reiterated that the country aimed to enhance the exports to $30 billion by 2020. The target, he said, may appear ambitious but only value-addition to 13 million bales per year that Pakistan produces can easily help us achieve it.
The public-private partnership initiative for labour law compliance would result in enhanced compliance to international standards, he said, adding that this would help to maintain GSP Plus status as well as enhance business productivity and sustainability.
Sheikh Abdul Mannan stated that the government’s efforts to compress imports in the ongoing fiscal year are finally bearing fruit as the total imports dipped to $44.03 billion, down 7.87 percent against the same period last year.
He also appreciated the government corrective measures such as the imposition of regulatory duties and banning furnace oil imports. Furthermore, after introducing new rules governing imports of used vehicles pushing the import bill has downwards during the period under review, he added.
The challenge for the government lies in reversing the declining trend in exports, which have declined 2 percent to $21 billion despite massive devaluation of almost 40 percent in the rupee’s value during the last 10 months and special incentives for export-oriented sectors including textile, he added.
