Business

‘Exporters suffering due to liquidity crunch’

Industrialists want govt to release pending refunds, says MCCI chief

Our Correspondent March 07, 2017

Industrialists want govt to release pending refunds, says MCCI chief. PHOTO: KPI

MULTAN: Multan Chamber of Commerce and Industry (MCCI) President Khawaja Jalaluddin Roomi said on Monday that the liquidity crunch, high production costs, and inability to compete with regional players are some of the factors behind the fall in Pakistan’s exports.

US top export, China import destination for Pakistan in 2015

In January 2017, exports of knitwear declined by 3.44% year-on-year, readymade garments declined by 3.60% and of all textile products declined by 1.30%. Between July-January, exports of textile products declined by 1.54% year-on-year to $7.34 billion.

Roomi said the decline has led to lower production and subsequent closure of a number of export-oriented industries in both sectors.

The official said that in the light of these events, the government should immediately release all pending refunds as a relief to exporters so that they are able to halt this declining trend.

A recently-publicised export package, which was announced a day before Heimtextil kicked off on January 10, led to foreign buyers demanding more discounts from the exporters of Home Textile. Roomi lamented that his organisation was unable to understand the objectives behind announcing the export package a day before Heimtextil that prompted buyers to ask for further discounts.

Grim year for textile exports

Unwillingly, the exporters had to offer around 3% discount to keep their buyers.

“Seeing it this way, the export package has actually failed to provide any relief or benefit the exporters of home textiles.”

Published in The Express Tribune, March 7^th, 2017.

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COMMENTS (2)

Ayesha Aly | 7 years ago | Reply I hear one of the biggest problem for organised sector exporters is stuck up refunds with FBR.This is very badly affecting their cash flow.FBR should issue all refunds that are due to taxpayers including exporters

BruteForce | 7 years ago | Reply If you buy electricity at such costs from the Chinese, obviously you will be unproductive! Chinese are selling electricity at thrice the amount India gets it from its plants. And to top it all off, CPEC is mostly loans in the energy sector. Pakistan is taking more money from the Chinese to build more inefficient plants. 32$ Billion worth of inefficient plants, which will be shut down few years into the operation, as Iran and India offer electricity at better prices and Pakistan will eventually decide to buy electricity, than produce it at home. Most of my predictions about Pakistan has come true, this one will too.

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