Page 22 - TEXtalks. July- August 2023

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APTMA demands separate

power tariff categories to

increase exports

The textile industry has asked the government to allocate a separate power tariff category for the export
industry by excluding cross-subsidies, stranded costs, and inflated system losses for achieving an exports
target of $50 billion in the next 4 years.
All Pakistan Textile Mills Association (APTMA) came up with the demand in a letter written to the secretary of
the Commerce Ministry Muhammad Sualeh Ahmad Faruqqui. The proposal is based on 2Es - electricity and
exports arguing that the higher the energy cost lower will be the exports as 30-40pc of conversion costs in
the textile sector are energy.

APTMA argued that cross-subsidy, stranded costs, inefficiencies, and excess transmission and distribution
losses couldn’t be exported, and the components in the energy tariff rendered exports uncompetitive. “The
solution is that special power tariff category for exporters should be extended to the export sector, which
judiciously excludes cross-subsidies and stranded costs, while accurately incorporating actual T&D losses
for B-3 and B-4 categories,” the letter read.

Bangladeshi apparel exports under

pressure after posting growth

Though the readymade garments sector in Bangladesh is currently under pressure for want of orders, its
apparel exports registered a big jump in European markets in the fiscal year 2022-23 despite the economic
slowdown driven by the Russia-Ukraine war.

Bangladesh exported apparel worth $23.52 billion to the European Union, registering a growth of 9.93
percent over the earnings of $21.40 billion FY22. According to statistics released by the Export Promotion
Bureau (EPB) apparel exports to the UK reached $5 billion in FY23 jumping by 11.78 percent over exports of
$4.5 billion in FY22. Industry players attributed higher exports to an increase in exports of high-value-added
apparel. The increase in the cost of input and freight charges also contributed to this increase. Still, the
performance of Bangladeshi apparel is commendable in view of the challenges faced the world over.

Exporters’ said that non-traditional markets are also performing well following the COVID-19 pandemic
shock but the overall apparel export volume remained low year-on-year in FY23. The EPB data reveals that
Bangladesh's apparel exports to non-traditional markets jumped by 31.38 percent to $8.37 billion in FY23,
accounting for 17.82 percent of Bangladesh apparel shipments in FY23. Exports to the Canadian apparel
market also grew by 16.55 percent to $1.54 billion in the last fiscal year.

July/August 2023