Pakistani textile exporters warn of sharp export drop and call for fiscal relief
The Pakistan Textile Exporters Association says exports will fall sharply in the October-December quarter due to weak Western demand, higher freight costs and rising production expenses, and urges the government for tax rebates and faster refunds.
In a statement released on Sunday, the Pakistan Textile Exporters Association warned that exports are set to tumble in the October-December quarter as Western buyers cut orders, sea freight charges have risen dramatically, and production costs continue to climb. Khurram Mukhtar, the association’s patron-in-chief, said the downturn threatens the competitiveness of Pakistani textiles across ginning, spinning, weaving, processing and knitting.
He appealed for a temporary duty drawback of 6-8% on local taxes and levies, immediate clearance of outstanding refunds, and the removal of energy tariff cross-subsidies to ease liquidity pressures. Mukhtar also pointed out that the Export Finance Scheme’s promised financing rate has not been put into practice, with banks charging higher rates and financing being extended to sectors not covered by the scheme. He proposed a Rs140 billion modernisation package for four major textile segments and urged the federal government and the State Bank of Pakistan to develop a ten-year strategic export plan.
Why it matters
Pakistan's textile sector, a major foreign-exchange earner, faces a steep export slump that could hurt the national economy.
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