Low exports are a major reason for the growing trade deficit.
PHOTO:FILE
LAHORE: Appreciating Prime Minister Imran Khan’s pledge on economic reforms and his vision to boost exports, the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) asked him to declare an ‘export emergency’ in the country to arrest the decline in the sector.
Pakistan’s current account deficit has surged more than 40% to $18 billion in fiscal year 2018-19, said PRGMEA Senior Vice Chairman Sheikh Luqman Amin.
Presently, there is only a desire to revive the economy, but an actual agenda, backed by pragmatic analysis, and research is missing, as the monstrous debt and huge fiscal and current account deficits are symptoms of an ailing economy.
He said that low exports are a major reason for the growing trade deficit, with past prime ministers forming just committees to address the deficiency.
Naya Pakistan needs new ideas for economic gains
He said that a committee was also formed by former prime minister Shahid Khaqan Abbasi.
The current economic team is good and they need to increase exports by any means, as low export levels are a major reason for the growing trade deficit, Amin commented.
He said that the value-added textile exporters want the federal government to formulate separate policies for various sub-sectors of the textile industry in order to resolve their sector-specific issues and problems.
Several export products of Pakistan face MFN tariff in India
Amin was of the view that different sub-sectors of the country’s large textile industry could not be treated at par because of their different and varying needs and requirements.
Hence, he said, the new government and textile ministry should formulate separate policies for the value-added and other sub-sectors of the industry in order to facilitate improved production and export.
He said the apparel industry plays a pivotal role in foreign exchange earnings and generating employment in the entire textile chain and exported textile products worth up to $5 billion.
He hoped that the new government would initiate the process of dialogue with representatives of all sectors of the textile industry to get their input for the formulation of a new policy.
He also urged on immediate clearance of outstanding refunds to protect the industry from total collapse.
Published in The Express Tribune, August 28th, 2018.
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