PTEA laments issues plaguing exporters

Wants government to resolve stuck refunds, energy crisis.

FAISALABAD: Highlighting major reasons behind the falling exports, newly-elected Pakistan Textile Exporters Association (PTEA) Chairman Sheikh Asghar Ali said stuck capital with the Federal Board of Revenue (FBR), energy crisis and lack of competitive edge over regional peers have resulted in the country’s foreign exchange earnings taking a hit.

Pakistan’s exports have virtually remained stagnant since 2010-11 and have barely crossed the $25-billion mark. As the government’s reliance continues to be on loans, grants and borrowing, export revenue has remained on the backburner with most textile exporters blaming lack of favourable policies as the core reason.

“Devising a strategy to tackle these issues is important not just for increasing industrial pace but also to save the livelihood of the industry’s workforce running in to millions,” said Ali, during the association’s annual general meeting here on Tuesday.

Addressing the members, Ali linked exports being under pressure due to economic, financial and industrial crisis prevalent in the country coupled with high production costs, tax burden, energy crisis and lack of working capital.

“Exporters’ money worth billions of rupees is stuck with government departments in sales tax, special excise duty and customs rebate regime creating liquidity crunch, hampering the export growth and turnover.”

Shedding light on the textile industry in Punjab, Sohail Pasha, who has served PTEA as its chairman, echoed the same views.

Published in The Express Tribune, September 23^rd, 2015.

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