Pakistan Textile Exporters Association (PTEA) have termed the extension period of R&D facility till June 2008 as a step in the right direction, which will help sustain value added sector exports in international market.
Talking to newsmen, acting Chairman Farhat Ullah Sheikh and Vice Chairman Shoaib Mukhtar said that Pakistani Textiles were confronted with severe competition, particularly bedwear and fabrics were facing strong challenge from cheaper Chinese products. It was for this reason that exports of these two items have declined in the current fiscal.
Elaborating they said that export of bedwear declined to 1.7 billion dollars in 11 months July-May 2006-07 against 1.8 billion dollars of July-May 2005-06 showing decline of 3.10 percent. Similarly exports of cotton cloth declined by 4.10 percent from 1.9 billion dollars in 11 months July-May 2006-07 to 1.8 billion dollars of same period in 2005-06. This downward trend in these two value added items against the target of 2 billion dollars plus each was the result of our products being non competitive due to high cost of production, they added.
They appreciated the efforts of Textile Minister Chaudhry Mushtaq Ali Cheema in extending the R&D facility for one year. However, more relief was needed to give a fillip to textile exports, they said.
Pinpointing that zero-rating of exports was the real demand of exporters; they said that the exporters have been consistently demanding relief on gas bills. They demanded that actual zero-rating and cutting cost of production would help value added textiles to face the challenges of new international World Trade Order, they concluded.
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