KARACHI: The prime segment of textile made-ups and products export sector-Pakistan Apparel Forum has expressed reservations over Prime Minister Shahid Khaqan Abbasi’s meetings with some big industrialists and businessmen only during his recent visit to Karachi.
Ignoring small and medium enterprise and export industry representatives has portrayed that present government mindset was still following footsteps of predecessors to meet selective and favourite businessmen only.
The head of the government should take on board for consultation all other industrialist and businesspersons as well, as they are holding major chunk in exports.
Chairman and Chief Coordinator Pakistan Hosiery Manufacturers and Exporters Association Jawed Bilwani was of the view that economy of Pakistan has been suffering due to dwindling exports and set of unprecedented challenges and demands government to take immediate cognisance of elements which were hampering pace and progress of exports. The widening trade deficit and multiple challenges faced by the textile industry including long withheld exports refunds, liquidity crunch, high cost of inputs and manufacturing, and cut-throat competition with regional countries calls for direct intervention of Prime Minister to support vital value-added textile industry which is the backbone of Pakistan’s economy. It could be a good omen if Mr Prime Minister consulted and take on board each and every export association as respective stakeholders the only representatives and very well-versant to their business and export problems.
Bilwani articulated that world was a global village whereby Pakistan remained an important player. Bilwani said that country’s exports in 2012-13 were $24.46 billion while export in 2016-17 stood at $20.45 billion reflecting an export decline of 16.40 percent.
In view of persistent decline in exports and prevailing uncertainty, he urged Prime Minister being leader of a business friendly and claiming government has much concern for development of trade, industry and exports, to intervene and take immediate cognizance of the situation and circumstances and call a broad-based meeting of all the representatives of export associations registered with Commerce Ministry inviting pragmatic proposals solely for betterment of country’s economy, to arrest steep decline in exports and boost new confidence in exporters to enhance their respective exports.
The current time demands government that it is imperative to have correct economic policies for survival of the economy and therefore, it is crucial to have genuine representation of all segments of industry and trade for government-trade interaction for resolution and formulation of right policies, these views were expressed by Ghulam Rabbani of Pakistan Yarn Merchants Association and Agha Saiddain of Pakistan Tanners Association.
No any government can demand its exporters and traders for betterment of economy trough exports unless taking on board all stakeholders and trade organisations. Any decision by government or commerce, industry and finance ministries in isolation from them would damage the fibre of economy as well as would shatter confidence in government.
The present government coming into power also seemed reluctant to materialise the long awaited economic measures especially-No Payment No Refund Regime for five export oriented sectors (textile, leather, sports, surgical, carpet.
The early steps to arrest the continuing decline in exports of these sectors and in enhancing the exports and not only help in reviving the ailing small and medium enterprises but to rejuvenating the units, they remarked.
For the achievement of the export target of $35 billion in coming years, the sectors need to increase exports with approximately 30 percent growth every year until June 30, 2018 and with 30 percent growth every year the export could reach $35 billion in 2017-18.
We felt if the government desires to and aims to enhance exports to $35 billion till June 2018 as per Strategic Trade Policy Framework 2015-18, in real earnest, it will have to initiate on a war footing the bold measures for rapid increase in exports.
Cost of all essential utilities should be brought down at the level of our regional competing countries.
Five export sectors should be declared as separate head of account in gas and electricity tariff structure and top priority be given to the export oriented industries in the supply of all utilities.
All Customs rebate claims are settled and paid through State Bank of Pakistan at the time of realisation and payment of export proceeds.
Deduction of Export Development Fund surcharge be stopped at least for the next five years as the government already has Rs 26 billion funds in its kitty for export development, they maintained.
Published in Daily Times, August 30th 2017.