Karachi, August 17, 2016 (PPI-OT): Shaikh Mohammad Shafiq, central chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) in a statement said that Textile exports went down by one billion dollars during last financial year due to massive decline in cotton crop production. The imports increased by 6% in July 2016 as the result the government could not achieve the exports target during the last fiscal year due to the decline in textile exports, the poor policies of the incumbent government had brought Pakistan’s most valuable sector on the verge of collapse.
The export of readymade garments, however showed a positive sign as it rose to $2.196 billion in July-June (FY 16) from $2.095 billion in same period of the year 2014-15 thus showing an increase of 4.83 per cent.
He further said that value added industry is already suffering with the low productivity due to shortage of cotton, high energy cost, and discriminating import duties on the industry’s raw material.
The PRGMEA chairman said that regional comparison of cost of doing business shows that Pakistan’s wages, interest rates, electricity, gas and water tariff are much higher and have created hurdles for smooth business.
In the recently announced budget for 2016-17, the Finance Ministry gave some incentives of rebate and zero-rated sales tax to top five important textile sectors to enhance their exports in the next two years, He also committed that the refunds cases having release payments orders (RPOs) up to April 30, 2016 will get payment by August 31, 2016 but did not mention about the fate of remaining cases. He concluded, the textile industry would remain unviable in case the government failed to return local taxes and levies on exports.
For more information, contact:
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA)
3rd Floor, Plot No. 57-C, 24th Commercial Street,
Phase II (Ext), DHA, Karachi, Pakistan