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KARACHI: The value-added textile sector Saturday urged the government to fix separate forex rates for exports, imports and remittances, saying the frail economy has outgrown the cost of manufacturing.
Muhammad Jawed Bilwani, Chief Coordinator of the Value-Added Textile Forum, said that the country’s value-added textile export sector is “very unhappy” over rising expenses.
“The policy discount and export finance rates are 16 percent and roughly 11 percent, respectively, while inflation reaches 31 percent.” He said.
Gas, which is a primary source of energy, is unavailable for the export industries. “The DLTL under textile policy stays suspended. Sales tax refunds are excessively delayed.”
“The government has also imposed severe restrictions on the import of raw material and machinery, which made the financial crisis worse for the entire sector,” he added.
He claimed that the exporters’ confidence had been shaken by political figures’ anti-economy claims that the nation was set to enter a “default” state.
“Foreign purchasers who do business with Pakistani exporters have a very unfavorable opinion of the country because of claims in the print and electronic media that Pakistan is on the verge of defaulting.” Bilwani added.
He said export-oriented sectors are compelled to purchase costly inputs to operate the industry, which has exorbitantly increased the cost of manufacturing.
“Textile exporters pay sales tax on yarn purchase, which they procure in advance. Refunds of sales tax and rebates are often delayed” he said. “The gravity of the situation demands that the government must support export-oriented industries on war footing and fix dollar exchange rates for exporters separately,” he added.
