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Friday, March 29, 2024

Reforms are needed to boost exports says textile industry

The Pakistan Textile Exporters Association (PTEA) has lauded the government’s initiatives to reverse the negative growth in exports as the country’s shipments recorded over 7% growth in October 2017. “Immediate availability of regionally competitive energy prices, release of pending refunds and a fast-track implementation of the export growth package will further boost the growth in exports,” it said.

PTEA Chairman Shaiq Jawed appreciated efforts of the government to arrest the persistent decline in exports, but at the same time underlined the need for further reforms by removing impediments in the way of export growth. Expressing satisfaction over 7.12% rise in textile exports in October and 7.72% increase in July-October, he said the growth could be increased further by addressing the remaining challenges.

High cost of production was a major stumbling block as the cost of energy inputs had reached an alarming stage, making the country’s products uncompetitive in the international market, he added. Comparing gas prices with regional peers, he said gas tariff in Bangladesh was $3 per million British thermal units (mmbtu), $4.2 in Vietnam and $4.5 in India whereas in Pakistan gas was available at $7.6 per mmbtu and re-gasified liquefied natural gas at $11 per mmbtu.

“With such a huge difference, how can our products compete with rival countries,” Jawed asked. Similarly, the electricity tariff for industries is almost 50% higher than that in the region. He called for waiving the 10% unaccounted-for-gas charges, Rs100 per mmbtu gas infrastructure development cess and making gas prices uniform across the board.

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