Page 22 - July-August-2017

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PTEA concerned on

unending fall in exports

The Pakistan Textile Exporters Association (PTEA) had expressed their concerns over the sluggish growth in
exports as an unending export downfall. The high production costs, inconsistent policies on government,
competition, and completely incompetent energy prices have played a major role in deteriorating the
exports of Pakistan.

The chairman of PTEA, Mian Ajmal Farooq said that the textile industry plays a major role in the economy of
Pakistan and is currently facing an unprecedented crisis. As a result of this situation, the sizeable textile
capacity has been severely damaged and the textile exports, both in quality and value terms have
decreased across the value chain; whereas, in the meantime, the regional competitors have doubled their
exports with an impressive percentage.

While giving details, Mr Farooq also said that the textile exports of the country were 13.8 billion dollars in
2010-11, which has now dropped by 10.4% to 12.4 billion dollars in 2016-17. On the other hand, the textile
exports of India witnessed a 31% increase from 27.7billion dollar in 2010-11 to 36.4 billion dollars in
2016-17.

“Unfortunately, the government is not feeling the pain of the fall in export earnings as sliding exports are
contributing significantly to the trade deficit,” said Mr Farooq. While pointing out the reasons for the erosion
of the textile industry, Mr Farooq said that the competitiveness was a major factor behind the downfall,
specifically against the huge incentive being provided by the competing countries to their export sectors.

Previously, to support the struggling textile industry of Pakistan, the government announced a textile
package, under which the incentives were offered for six months. This package has also expired now.
Farooq demanded to continue the drawback of taxes incentives scheme and for immediate payment of the
outstanding refunds claims that are stuck in the refund regime since a long time.