ISLAMABAD
\nThe government\u2019s recent economic measures are expected to support export growth after months of distress signals from the textile and allied industries, business leader and former president of the Islamabad Chamber of Commerce, Shahid Rasheed Butt, said on Tuesday.
\nIn a statement, Butt said Prime Minister Shahbaz Sharif announced a package of reforms after repeated warnings from exporters about high energy costs, weak demand, and tight financing. He said parts of the business community had welcomed the steps and were providing limited but timely relief to the textile and selected industrial sectors that are important to Pakistan\u2019s export earnings.
\nShahid Rasheed Butt said the package included a Rs 4.04 per-unit reduction in industrial electricity tariffs, lowering costs for export-oriented units. He added that the export refinance rate had been cut by 300 basis points, lowering borrowing costs for firms already struggling with high working capital costs. According to him, electricity wheeling charges had also been rationalised to below Rs 9 per unit, giving industries greater flexibility in sourcing power.
\nHe said changes to the Export Facilitation Scheme had removed disadvantages faced by upstream manufacturers, creating a more level playing field within the textile value chain.Linking the measures to longer-term goals, Butt said value-added textile exports could rise from about $ 18 billion to $ 30 billion over the next five years if policies remained consistent. He said the industry was targeting annual export growth of around 10 percent.
\nHe argued that Pakistan\u2019s strength in value addition, which accounts for roughly three-quarters of textile exports, could be enhanced if the private sector were involved in economic decision-making. However, he cautioned that headline measures would not be enough without credible implementation.
\nEnergy bills remain volatile due to fuel price adjustments and taxes, while refund delays continue to strain cash flows. Higher exports must translate into job security and wage growth.Export recovery would help ease pressure on foreign exchange reserves and reduce reliance on external borrowing, he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD The government\u2019s recent economic measures are expected to support export growth after months of distress signals from the textile and allied industries, business leader and former president of the Islamabad Chamber of Commerce, Shahid Rasheed Butt, said on Tuesday. In a statement, Butt said Prime Minister Shahbaz Sharif announced a package of reforms after […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-529392","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n