Pakistan's PTEA urges govt for textile sector bailout

07 Nov '13

2 min read

The Pakistan Textile Exporters Association (PTEA) has urged the Government to introduce a bailout package for the textile industry of the country, to rescue the industry and its exports from the ongoing financial and energy crisis, to ensure better economic growth through higher employment and foreign exchange generation.

In a recently released statement, PTEA chairman Asghar Ali and vice chairman Muhammad Asif said textile exports are mainly getting impeded due to rising cost of production instigated by hike in prices of raw materials, gas, power and petroleum products, Business Recorder reported.

Unusual rise in raw material prices have sky rocketed the prices of value-added textile items, rendering these goods uncompetitive in global market, and making it difficult for producers to continue production and honour their export commitments.

Further, liquidity crisis stirred by the blocked up funds of exporters in Sales Tax refund, Customs Rebate and Drawback of Local Taxes and Levies (DLTL), as well as bad law and order situation in the country, and energy crisis are also negatively impacting the industrial trade activities, productivity and employment of the sector, they added.

Across the world, Governments aid their industries by facilitating low cost inputs, to ensure smooth running of the industrial cycle and global viability of their products.

However, in Pakistan the industry is burdened with rising cost of production, high rate of credit, heavy load shedding and high cost of energy, which all together are pushing the industry to the wall. This in turn has a direct impact on the national economy and employment in the country, they added.

The PTEA leaders thus called on the Government to take up the issue seriously and initiate steps to salvage the industry like ensuring speedy clearance of blocked up funds of exporters in Sales Tax, Customs Rebate and DLTL regime, and also make efforts to address energy crisis issues.

Fibre2fashion News Desk - India

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