Export package termed short-term solution

Textile bodies demand cut in input costs as long-term relief

KARACHI: Value-added textile export associations have welcomed approval of the export package for 2017-18, but suggest it is a short-term solution to a long-term problem.

“The long-term solution is to reduce the cost of inputs like electricity, gas and water tariffs,” said a joint statement issued by the associations on Saturday.

The Economic Coordination Committee (ECC) of the cabinet approved the export package on Thursday in a bid to give a boost to shrinking exports of the country.



Under the package, 50% of the incentive will be offered to eligible textile and non-textile exporters on the same terms as given for the period January to June 2017 without the condition of 10% increase in shipments.

The remaining 50% of the incentive will be provided if an exporter achieves increase of 10% or more in shipments compared to the corresponding period of previous year.

In the statement, Pakistan Apparel Forum, Pakistan Hosiery Manufacturers Association and others said an additional 2% duty drawback on exports to non-traditional markets like Africa, Latin America, non-EU countries, Commonwealth of Independent States (CIS) and Oceania as well as expeditious settlement of payment claims were great initiatives of the government.

The incentive amount should be credited to the exporter account at the time of realisation of export proceeds as all export-related information were submitted online and available with the government, the statement said.

They urged the government to take on board the stakeholders while drafting and finalising the Duty Drawback of Taxes Order 2017-18 and share the draft for review.



They proposed that the government should bring the cost of inputs up to 20% in order to bring it on a par with those faced by regional competitors.

Published in The Express Tribune, October 8^th, 2017.

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