June 14, 2008	Saturday	Jamadi-us-Sani 09, 1429

FAISALABAD, June 13: Textile exporters are not happy with the new budget as the government, what they feel, announced nothing for this sector facing problems because of the high cost of doing business and challenges at national and international levels.

Pakistan Textile Exporters Association (PTEA) chairman Tahir Ishaq believed that the textile export was not given due focus in the budget presented by the finance minister despite the fact that it earns 65 per cent of the total foreign exchange.

He said that research and development (R&D) was a vital incentive for the textile exports but its status had also been not clarified in the budget. The textile exporters were unable to finalise their July and future export contracts in the absence of clarification about the R&D.

Mr. Ishaq pointed out that levy of 10 per cent advance payment of withholding tax on industrial units in electricity bills would heavily burden the already fragile financial position of the exporters, who had already been facing credit crunch as the bank loans had become very costly.

He severely criticised the frequent hike in electricity, gas and petroleum prices, which had increased the cost of production making export goods uncompetitive in the world market.

The PTEA chief emphasised the need to bring down the export refinance rates and cited the example of India where exporters were given five per cent concession in mark-up rates.

Another exporter Riaz Shahid talking to Dawn said that exporters had been expecting special measures for the crisis-ridden textile sector in the budget, but to no avail. He said the exporters had time and again drawn the government attention towards the export problems and demanded facilities, but their requests were turned down.

Faisalabad Chamber of Commerce and Industry president Asim Khursheed said the government completely ignored the textile sector in the budget and announced nothing to inject new blood in the industry. He said though this budget would help the common man, but no measures were taken for the industry.

He sought special relief for the textile industry and expressed the hope that the government would present a supplementary budget for this sector.