KARACHI: Expressing concern over rapidly falling exports of value-added textile goods, industry leaders on Saturday urged the government to immediately release all outstanding refunds and rebates to generate sufficient liquidity to help arrest falling exports.

Referring to exports figures released by the Pakistan Bureau of Statistics, leaders said that during the first seven months of current fiscal textile exports declined by 1.54 per cent over the corresponding period last years.

In contrast, textile exports during July-Jan of 2010-11 were at $7.45 billion but exports during first seven months of current fiscal recorded a decline. This was alarming because instead of registering increase the exports after passing of long period of seven years declined, they lamented.

Pakistan Apparel Forum chairman Muhammad Jawed Bilwani said the main reason behind rapid fall in exports is that exporters are faced with tough competition from regional countries due to ever increasing cost of production and persistent liquidity crunch.

Mr Bilwani criticised the government for announcing textile export package just before the start of Heimtextile (10-13 Jan, 2017) due to which foreign buyers immediately demanded discounts from Pakistani exhibitors.

As a result of this, he said, exporters who got 6pc rebate under the relief package had to give approximately 3pc discount to their buyers. Unfortunately by the time Pakistani exhibitors in Heimtextile were back home yarn prices increased by 6pc, he added.

Pakistan Bedwear Exporters Association (PBEA) chairman Shabir Ahmed was highly critical of the government for giving rebate on yarn exports in the relief package.

Instead of giving cushion to local value-added sector the move benefitted our competitors the world over, he said.

This did not only have a negative impact on country’s value-added exports but also gave an edge to our competitors, he added. Mr Ahmed demanded immediate withdrawal of rebate on yarn exports.

Lasbela Chamber of Commerce and Industry president Ismail Suttar said the government should bring electricity, gas and water charges at par with neighbouring countries to enable country’s exports competitive.

He further said that billions of rupees belonging to exporters are still pending with government on account of sales tax refund, customs rebate claims, drawback on local taxes and levies (DLTL), and withholding taxes.

Published in Dawn, February 26th, 2017