KARACHI, Nov 1: The Ministry of Commerce has sought trade bodies’ assistance in pinpointing the reason for a steep fall of over 20 per cent in export value of textile made-ups in September.
The ministry, which is already worried about a sharp decline of around 30 per cent in leather garments export, seems to be seriously looking into ways and means to arrest the falling trend in export of value-added goods.
The official export figures show that during September 2002, the export value of made-ups stood lower at $23.749 million as against $29.832 million reported during the same month of 2001, a decline of 20.39 per cent.
“We fail to understand that as to why the Ministry of Commerce has sought reasons for such a steep fall in export value of textile made-ups when the ministry clearly knows about all the bottlenecks exporters face in doing smooth exports,” ex-chairman, Pakistan Bedwear Exporters’ Association (PBEA), Shabir Ahmed, said.
The information sought by the Export Promotion Bureau from trade bodies through a circular NoEPBF/2002/1881 will be submitted onward to the ministry. It will be used to prepare a comprehensive report about the factors causing decline and will also suggest removal of obstacles, the EPB circular added.
Talking to Dawn a number of exporters’ associations said it was strange that the ministry is seeking such information from the private sector whereas it is an open fact that what factors have been hindering the exports.
The Pakistan Hosiery Manufacturers Association (PHMA) chairman Aslam Ahmed Karsaz said the exporters’ bodies had been warning the government that export trade is confronting on two major accounts i.e. appreciation in the rupee value and
drastic fall in duty drawback rates.
Zubair Parekh, chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), said that due to frequent rise in power tariffs the country’s exports became uncompetitive in the world market, and there was also a decline in value as well as quantity.
Another factor, on which all the leaders of trade bodies are unanimous, is long delay in payment of sales tax refund claims, which deprives the export trade of much needed cash flow to fund their export contracts.
Shabir Ahmed said the need for this exercise would not have risen had the ministry listened to the complaints lodged time and again by the exporters.
