FAISALABAD, July 3: Pakistan Textile Exporters Association (PTEA) has said that the high rate of export finance, increase in POL prices, shipping freight and trade barriers will undermine the benefits of zero-rating tax policy and other incentives provided by the government for the textile sector.

PTEA Chief Mian Faiq Jawed, talking to the press here, said that the burden on exporters would render the exports uncompetitive in international market.

He said bed linen exports to Europe went down by 11 per cent in the first three months of the current calendar year and now when the exports were just picking up, the cost of petroleum products had been enhanced resulting an increase in freight rates.

Mr Faiq said a sizable portion of the Pakistani market had been captured by China with comparatively cheaper products and exporters apprehended further setback in the wake of the rising cost of inputs and high export finance.