KARACHI: Apparel textile makers-cum-exporters have demanded of the federal government to freeze the dollar and euro exchange rates to help them import raw materials for producing finished items for export and sought an enabling environment.
In a letter to the Prime Minister, Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani said export orders, which are under negotiation with the global buyers, will collapse if dollar and euro exchange rates are not fixed for the exporters.
Freezing of the foreign exchange rates will also help the exporters secure global orders for the future as well.
A copy of the letter was also made available to Business Recorder on Thursday, saying the free fall of rupee against the dollar and euro will ultimately lead to a slump in export and foreign exchange earnings.
The uncertainty of the unfrozen exchange rates has made exporters feel “high unrest”, as they are unable to negotiate new export orders with the foreign buyers because of the “extreme” uncertainty about the cost of manufacturing, it says.
It requested that an assured availability of utilities like power, gas and water at tariffs rates equal to those being charged by the governments of competing countries from their textile industries. The letter calls it “highly significant” to compete on the world markets.
The apparel sector also sought freezing of the utility tariff like power and water for the export-oriented industries, and enabling environment to compete regionally and globally.
The sector also fears that the government’s move to discontinue the competitive energy tariffs after June 30, 2022 will draw back the country’s textile exports.
“In this connection, continuation of competitive energy tariff is highly inevitable and crucial for the sustainability and enhancement of exports,” according to the letter.
It complained that the economic team of the prime minister has set aside the repeated budget proposals of the exporters that had sought continuation of the competitive energy tariffs.
Pakistan Apparel Forum represents the value-added textile export industry that contributes 61 percent in the country’s total exports of $28.87 billion made so far over the past 11 months of FY2021-22, standing out with $17.62 billion share.
The forum consists of knitwear/hosiery, woven garments, textile made-ups (excluding bedwear and towel) and apparel, which puts up 51 percent to the country’s total textile exports of $8.9 billion in the last 11 months of FY2021-22.
The Value-Added Textile Export Sector generates 41 percent urban employment and over 40 allied industries are associated with it.
Copyright Business Recorder, 2022
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