FAISALABAD, March 19: Textile exporters have demanded abolition of export development surcharge (EDS) and adequate compensatory rebate to offset sudden jump in raw material and overheads costs.

Apprising newsmen of disastrous situation on export front, Khurram Iftikhar, the chairman of All Pakistan Cloth Exporters Association (APCEA) said on Wednesday that Iraq war danger had hit Pakistani textile exports the most.

On the domestic front, cotton yarn prices had gone up from Rs355 to Rs445 for 20/single cotton yarn while the rates of 30/single cotton yarn had jumped from Rs520 to Rs630 per bundle, polyester staple fibre prices from Rs60 to Rs95 per kg, he said.

Combined 25pc increase in raw material prices had made the exports of textile unviable, he said. The export orders placed before the hike were the hardest hit, he added.

Khurram Iftikhar said petroleum price hike added to the wounds. Because of the hike the foreign shipping companies increased the bunker surcharge from 70 to 90 dollars while the local transporters increased the charges by Rs1,800 per container. War risk surcharge had also been added to freight rates on Pakistan cargo, thereby subjecting the exportable goods very expensive compared to the rivals, he said.

Moreover, war clouds in the Gulf had made foreign buyers reluctant to place fresh export orders with Pakistani exporters, he said.

Mr Khurram Iftikhar appealed to the Adviser to PM on Finance and Economic Affairs Mr Shaukat Aziz to devise export-friendly policies. He said all over the world, the exports were not only subsidized but also exempted from all kinds of taxes. Rival exporters were enjoying zero rated privileges compared to Pakistani exporters, he added.