Govt to Fix Textile Exports

Meanwhile, the federal administration has formed separate committees to address key matters facing Pakistan's textile export industry and directed them to submit recommendations within 15 days after a high-level gathering on declining textile exports and domestic trade.

Key points

• The session, held on October 13, was chaired by the commerce secretary and Rana Ihsaan Afzal Khan, coordinator to the prime minister.
• PTEA Patron-in-Chief Khurram Mukhtar and Chairman Reehan Naseem represented the association.
• The next session with power sector authorities is scheduled for October 16.
• 56 billion anomaly involving cross-subsidies imposed on B3 and B4 electricity consumers.
• PTEA additionally challenged the methodology employed to calculate the levy on gas tariffs and triggered concern over Unaccounted-for Gas (UFG) charges.

In practice, the session, held on October 13, was chaired by the commerce secretary and Rana Ihsaan Afzal Khan, coordinator to the prime minister. Authorities from the ministries of finance, power, petroleum and maritime affairs, the Federal Board of Revenue (FBR), the State Bank of Pakistan (SBP) and the Punjab Industries Department attended, alongside textile industry representatives and other stakeholders.

According to the Pakistan Textile Exporters Association (PTEA), the administration took serious note of its worries after the association cautioned on October 7 of declining textile exports and domestic commerce and called on structural reforms to restore competitiveness. PTEA Patron-in-Chief Khurram Mukhtar and Chairman Reehan Naseem represented the association. Pakistan-China Trade Data Gap Shrinks by 98%.

PTEA proposed a temporary Duty and Tax Remission for Exports (DLTL) incentive of 6 to 8 percent of total export sales, conditional on 10 percent export expansion, to assist exporters retain their international market share. It additionally called on structural reforms to address longstanding challenges affecting industrial production, financing and competitiveness.

Electricity tariffs were a major concern. PTEA highlighted an estimated Rs. 56 billion anomaly involving cross-subsidies imposed on B3 and B4 electricity consumers. The Power Planning and Monitoring Firm (PPMC) acknowledged Rs. 26 billion of the identified amount, according to the association.

Meanwhile, the next session with power sector authorities is scheduled for October 16. The Ministry of Commerce has directed the authorities to reach a final conclusion for a decision by the prime minister. 20 Textile Firms Earn Rs. 52 Billion Profit.

PTEA additionally challenged the methodology employed to calculate the levy on gas tariffs and triggered concern over Unaccounted-for Gas (UFG) charges. It exporters say growth industrial energy costs and weaken competitiveness.

On logistics, the association welcomed the maritime affairs minister and his team's efforts to reduce domestic costs and improve port efficiency. Nevertheless, it highlighted the lack of regular cargo trains from Faisalabad, Lahore and Multan, high sea freight charges, lengthy transit times and operational difficulties at transshipment hubs.

In practice, the association additionally triggered concern concerning pricing anomalies under the Export Finance Scheme (EFS), inadequate allocations for the corporate sector and some banks' failure to implement the confirmed fixed interest rate of 4.5 percent. World Losing Interest in Pakistan Textile Exports.

Discussions with the FBR covered delays in sales and income tax refunds and duty drawbacks. It the industry notes constrain exporters' liquidity and their ability to finance production and fulfil orders.

PTEA described the session as productive, saying the matters were examined in detail and other stakeholders backed its position. At the association's request, separate committees were formed to examine the problems and submit recommendations within 15 days.

For context, the industry hopes the recommendations will lead to practical measures to restore exporter confidence, protect Pakistan's share of international markets and reverse the decline in textile trade. Stay Connected with ProPakistani.

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For now, govt to Fix Textile Exports remains the part of the story worth watching, and further updates are likely as more details are confirmed.