‘MFN status to eliminate local value-added sector’
Pakistan Hosiery Manufacturers and Exporters Association Central Chairman Muhammad Mushtaq, Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani and Towel Manufacturers Association of Pakistan Chairman M Naqi Bari said this while talking to Pakistan Economy Watch (PEW) President Dr Murtaza Mughal.
“Our production is restricted, exports are shrinking and we stand at a disadvantage as far as economies of scale and government’s support is concerned,” they complained. They said that instead of moving forward with value-addition, the country has been going backwards by exporting more of raw material like cotton and yarn.
All regional countries are following good practices, while India allows export of surplus cotton only, which results in stability for value-added sectors; Pakistan should also follow such enabling policies, they said.
Mughal said that Pakistan’s cotton and textile exports stand at $14 billion while Indian exports have touched $24 billion. Pakistan ranks lowest in the region as far as profit per cotton bale is concerned, he added.
Mughal said that Pakistani exports are declining, but earnings have improved owing to rising prices, which should not be claimed as a success.
Published in The Express Tribune, December 3rd, 2011.
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we have a free trade agreement with china for god sake,...
Have they just realised this??/ All they had to do was look at the data on production to realise that economies of scale can not be achieved for any sector in pakistan due to capacity of output and production facilities !!! India is in different league!
Do these people understand the real meaning of MFN under WTO.press and media needs to educate them.