All Pakistan Textile Mills Association (APTMA) Patron-in-Chief Dr. Gohar Ejaz urged the government to take measures to save the economy that is already going downhill, reported 24NewsHD TV channel.
In a letter written to Prime Minister Shehbaz Sharif on Friday, he revealed that Pakistan’s textile exports are expected to fall below $ 1 b per month from January 2023.
He said that the exports are facing a severe shortage of capital and they should be paid with their refunds and demurrages. “Under the dire circumstances, APTMA has requested the Prime Minister's attention to the issues to enable the export-oriented sector to continue contributing the maximum possible support for the Balance of Payments as well as employment for the people of Pakistan.”
The letter maintained that since Pakistan’s economy to a very large extent depends on textile exports for foreign currency and employment, the international economic situation primarily caused by the Ukraine crisis combined with the floods in Pakistan have combined to formulate the perfect storm for the country’s economy.
Under the dire circumstances, APTMA has requested the Prime Minister to react timely to enable the export-oriented sector to continue contributing the maximum possible support for the Balance of Payments as well as employment for the people of Pakistan.
Flood destroyed cotton crop- only 5 Million bales this year while industry requires 14 Million Bales. Pakistan needs to clear all imports of Export Oriented sectors that have arrived at parts whether against L/Cs or cash against documents. Priority for and exempting Export Oriented sectors from import controls allowing L/Cs for raw material machinery, spare parts, and other items to restore the industry’s supply line is a must. There should be a refund for all Demurrage and Detention Charges incurred by EOU Sector to maintain competitive costs for exports. A 24-hour help desk should also be maintained to monitor and resolve exporters’ issues.
The letter further adds that the implementation of competitive rates for electricity and gas should be ensured. “Continuous supply of gas and electricity should be provided to the textile sector.”
Gohar Ejaz said that the SRO of zero-rating sales tax on local sales of the textile sector should be restored, and the period for submission of duty drawback claims should be extended.
It should be ensured that competitive rates of electricity and gas for the export sector should be implemented.
He also asked that LTFF should be given to the projects whose LCs have been opened.
Reporter: Waqas Azim