KARACHI, Oct 8: The exports of value-added textile are presently confronted with a number of problems which are becoming impediment in their growth and also dwindling their volumes as well as foreign exchange earning.

After the 9/11 incident the foreign buyers are seeking 17-21 per cent reduction in prices of value-added textiles which adds to more losses being suffered on account of 5 to 7 per cent appreciation in rupee value and cut in duty drawback rates.

The most damaging factor for exports is the overdue payment of sales tax refunds which results in blocking of their much needed liquidity to meet export contracts. Exporters are indeed greatly affected by overdue payment in sales tax refund which makes them helpless in fulfilling their urgent export commitments.

This was stated by Aslam Ahmed Karsaz, chairman, Pakistan Hosiery Manufacturers Association, on his visit to Karachi Press Club here on Tuesday.

Accompanied by Mohammad Javed Balwani, chief coordinator of PHMA and Yunus Bin Aiyoob, secretary general, he said the government should come forward and rescue the value added textile exports so that the ambitious export target of over $10 billion was achieved.

He urged the finance minister to abolish the export development surcharge as was announced in the Trade Policy 2001-02.

Aslam Karsaz said the government did very little to sort out the problems confronting the export trade, particularly in keeping the country’s export viable in the world market.

He pointed out that knitted garments are high price items, therefore, they are more sensitive to recession compared to other textile madeups, but the government has slashed duty drawback rates on their exports and suggested that it should be at least equal to those of other textile items.

He said it was very disgusting that KESC had started to treat the use of lights, airconditioners, fans and water pumps in the industry offices as “commercial” load.

The PHMA chief said consumption of energy of such electrical units inside or on the boundary wall of an industrial unit was all related to the industry and under no circumstances be termed or treated as “commercial.”

Mr Karsaz said in most cases export orders remained on the verge of cancellation because the exporter did not have funds for maintenance of his factory and production and give salary to his workers. In some cases, he said, the exporter managed to get bank loan, but high interest rate made product uncompetitive in the world market. Exporters who are contributing huge amount in foreign exchange are being starved of their own funds, he added.