The SRO regime and downpour of circulars not only change the policies overnight but also disfigure the basics of the policy or rules and regulations.
Resultantly the exporter is flabbergasted and is unable to plan his yearlong export schedule in the face of uncertainties and fluctuations of rules of business.
Addressing a news forum, Mian Ahmad Kamal, Chairman All Pakistan Cloth Exporters Association (Apcea), expressed great satisfaction and happiness that textile exporters have braced themselves up to face the challenges of world trade order (WTO).
Within a short span of two years the textile exporters have graduated from manufacturers and exporters of Gray cloth to manufacturers and exporters of value added items.
Two years ago there were only three hundred Auto and Jet looms in Faisalabad, the number has increased to 3000 now.
Similarly there were only 10 exporters having printing machinery facilities of their own presently more than 40 exporters have installed printing and finishing machinery and more units are coming up.
Many of the exporting units have also graduated in to ready made garments manufacturers and exporters, he added.
An important aspect of this development, Ahmad Kamal explained that all this achievement has been made on self help basis without any assistance or guidance from government side.
Another achievement worth mentioning in respect of exporters bracing up for new worlds trade order is that majority of our exporters have acquired international standards Certification like ISO-9000, 9001, 9002, and 9014.
Some exporters have also acquired Certification SA-28 and are complying with the environmental regulations as well. All this has again been achieved voluntarily and without any assistance or guidance from the government, he added.
He further said that the exporters also established infrastructure facilities on self-help basis to promote the exports of the region. Faisalabad Dry Port one of the biggest in the country has been established in the private sector to facilitate the custom clearance locally and expeditious shipment of export cargo.
Similarly up gradation of local airport has been undertaken by the exporters to make it suitable for international flights, he mentioned.
He pointed out that Pakistani entrepreneur is second to none in the World and has full capabilities and qualities to quickly adapt himself to changes and new technologies.
Pinpointing the handicaps being faced by exporters, Ahmad Kamal said that while the new international trade scenario unfolding in 2005, the initiatives and drive of exporters are more than often bogged down in the intricacies and inconsistencies of the government policies.
The complexities and rigmarole of textile quota policies under go changes even faster than the chameleon, he added.
Yet another big irritant besetting the exporters is inordinate delays in Sales Tax refund system and duty drawback regime.
Huge amounts of exporters capital are stuck up restraining their export turnover and their ability to execute more export orders.
The magnitude of this problem could be gauged from the fact that two months ago four billion rupees of exporters were reported to be blocked in refund system alone, he mentioned.
In addition to this liquidity crunch, Ahmad Kamal said that the exporters have to spend a big chunk of his time, energy and resources to sort out the hassles of Sales Tax and Duty Drawback.
The exporters have been forced to establish in his office separate departments for sales tax refund and duty drawbacks equipped with qualified personnel and computer systems to produce relevant record for internal and external auditors and for explaining and reconciling the entries recorded in documents.
The exporters have been heard groaning that the quantum of time they spend in tax offices if devoted to promotion of their exports they would have doubled their export performance, he added.
Chairman Apcea observed that the WTO means open competition. Open competition means competitive prices; competitive prices mean minimum possible cost of production.
Unfortunately Pakistani exporter is not enjoying level playing filed with regard to cost of production, he pointed out.
Ahmad Kamal said that the components of production cost are; raw material, labour, electricity and carriage inwards and outwards.
Talking about recurrent failure of cotton crop, he said that the prices of yarn frequently pushed upward, which has been set new record in the history of Pakistan.
The prices of polyester fibre an important substitute and alternate raw material are manipulated by cartels likewise. The helpless exporter is left at the mercy of raw material suppliers and control on prices of this basic production component is beyond him.
Prices of electricity and gas are not only comparatively higher but also highly variable factor of production.
Rates of petroleum products in the country are fluctuating month to month and move both ways most unpredictably, he mentioned and added that cumulatively these components not only become cost heavy but also their frequent fluctuations upset the production schedule as well as delivery schedule of goods, disappointing the foreign buyers.
Further more cost of production is exacerbated by a large number of municipal taxes, Zila taxes, and provincial taxes on machinery and movement of goods.
Freight hikes, fuel adjustment charge, bunker surcharge and a bevy of other charges are external factors adding burden on competitiveness Pakistani exporters, he further added.
Chairman APCEA said that Pakistani exporters are bracing themselves up for the new world trade order on one side, while Pakistani exporters are suffering from certain weaknesses and which are shedding negative effect on their competitiveness on the other side.
Fundamental weakness of Pakistan's export trade is lack of aggressive marketing. Pakistani exporters have been very tardy in this filed consistent and constant efforts have not been made to market export goods.
Korean war boom in 1953 initiated export culture in Pakistan, ever since we were exporting to traditional markets of Europe and America as also traditional items of semi-finished textile.
Recently, he said that exporters have started making efforts in diversification of exports through value-added items as well as exploring new markets in Australia and South America through individual efforts.
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