The Pakistan Textile Exporters Association (PTEA) has urged the new incoming PML-N Government to formulate new policies to boost the country’s exports.
A new policy designed by taking all stakeholders into confidence could boost the country’s textile exports from present US$ 13 billion to US$ 20 billion, PTEA chairman Ashgar Ali and vice chairman Muhammad Asif said in a statement.
A new export-friendly policy would not only aid revival of waning industries, but would also rejuvenate the stumbling economy, the duo said, and urged the Federal Board of Revenue (FBR) to aid in designing new export-friendly policies, rather than posing roadblocks in the way of the industry.
They suggested that the Government can study policies of other export facilitating countries in the region like China, India and Bangladesh, while framing a policy for Pakistan.
Energy shortage, excessive tax burdens, high rate of interest and jammed tax refunds have not only stagnated the growth and exports of the country’s textile industry, but have also put a question mark on their viability, the statement said.
While accentuating the need for prioritizing the economy, the statement said that it would be highly impossible for Pakistan to achieve growth without reviving its waning economy.
Calling energy crisis as the main barrier in industrial growth, Mr. Ali said the Government should prioritize ensuring unrelenting energy supply to the textile industry, which has an export turnover of US$ 13-14 billion, and employs around 15 million workers.
According to industry analysts, power cut of up to 18 hours and gas outages for four days per week has compelled the textile industry in Pakistan to operate at only half the capacity, and rendered several workers jobless.
Several powerlooms, which form the base for the textile sector, were forced to cease operations due to continued power cuts, Mr. Ali said.
Urging the new Government to bring down high rates of interest, he said the country’s textile sector is geared up to make new investments as soon as it witnesses growth-friendly financial environment.