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Pakistan-Value-Added Textile Leaders Laud Export Package

Coco

2017-10-11

The value-added textile export associations have lauded the Economic Co-ordination Committee (ECC) of the Cabinet on approval of export package for 2017-18 which will provide 50 percent of the export package incentive for eligible textile and non-textile sectors on the same terms as for the period from January 1 to June 30, 2017 without condition of increment and the remaining 50 percent of the rate of incentive would be provided if the exporter achieves an increase of 10 percent or more in exports as compared to the corresponding period of the last year as proposed by Commerce Ministry.

Muhammad Jawed Bilwani, Chairman Pakistan Apparel Forum; Muhammad Zubair Motiwala, Chairman Council of All Pakistan Textile Association (CAPTA); Tariq Munir, Chairman PHMA; Kamran Chandna, Chairman PAKSEA; Shaikh Muhammad Shafiq, Chairman PRGMEA; Sohail Aziz, Chairman PCFA, in the joint statement, voiced that such export encouraging initiatives and foremost practical steps and measures to curtail the costly inputs is inevitable to enhance exports. They added that an additional 2 percent drawback for export to non-traditional markets - Africa, Latin America, non-EU European countries, Commonwealth of Independent States and Oceania and the expeditious settlement of payments claims by the State Bank of Pakistan (SBP) are great initiatives by the government.

They suggested that the incentive amount should be credited to the exporters account at the time of realization of export proceeds as all export related information/documents are submitted online and available with government like E-Form is generated through WeBOC and submitted to SBP, GD is generated online in WeBOC and Foreign Exchange Payment realized through Authorized Dealer and reported to SBP. This will save the precious time of exporters which was used in the online submission of export details at RDA Cell website and eliminate the risk of time barred of claims.

They urged the government to take on board the stakeholders – the Associations while drafting and finalizing the Duty Drawback of Taxes Order 2017-18 and share the draft for review.

They stated that the measures announced in the ECC meeting will surely provide relieve, the burdened exporters facing severest ever liquidity crunch, for their survival and termed these measures as short term solution, however, to surpass the previous record of annual exports of $25 billion and to achieve a milestone, it is crucial for the government to provide conducive environment by reducing cost of inputs – electricity, gas, water rates. They proposed that government should bring cost of inputs – electricity, gas, and water rates 20% lesser than rates prevailing in regional competitor countries. Reduction in inputs is the long awaited demand of the value added textile exporters to make competitive the Pakistani exporters in the international market because minimum in Pakistan is 111% higher than Bangladesh (Pakistan $144 and Bangladesh $68). Hence, 20% reduction will make Pakistani exporters viable to compete with regional competitors.

They emphasized that 4% incentive on Yarn should be given to indirect exports (local sales to Pakistani exporters) instead on direct exports to our competitors like China and Bangladesh who will get Pakistani yarn at 4% less cost than the Pakistani exporters. 4% incentive on sale of yarn to Pakistani Exporters (indirect exports) will provide aid to the local knitting, weaving and processing industries.

Source:Echemi
Disclaimer: Echemi reserves the right of final explanation and revision for all the information.

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