Exporters have pinned high expectations on the proposed package for export-oriented sectors which Prime Minister Nawaz Sharif is scheduled to announce on Tuesday (today), saying it can prove a catalyst for the revival of industry. Representatives of different exporters associations have confirmed to Business Recorder that they have received invitations for an event where Prime Minister Nawaz Sharif would announce the package for exporters ranging from Rs 100-120 billion.
The figure is also confirmed by Textile Ministry officials. Exporters said that the proposed package envisages reducing the cost of doing business and if implemented, can revive the country's industry, increase exports besides creating job opportunities. The country's textile industry has a potential to double its exports from $13 billion to $26 billion and provide 3.5 million additional employment opportunities, they added.
Chairman Council of All Pakistan Textile Associations, Muhammad Zubair Motiwala said that industry is expecting the government to announce incentives which could reduce the cost of doing business. A number of proposals were shared with the government in support of industry, and if considered in the package, would help increase the country's exports.
The major factor behind the declining exports trend is the erosion of textile industry's competitiveness, particularly against the huge incentives being provided by competing countries to their export sectors, he added.
Motiwala said that there is around 18-20 percent difference in gas and electricity prices between India and Pakistan. Unless and until the cost of doing business is not reduced, desired results of increasing exports would not be achieved. Bilal Mulla, former chairman Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) said that policies in the past were also good, but it all depends on implementation. He said that pending liabilities of previous policies are yet to be cleared.
Others termed the package a timely step which would encourage exporters. They said that government needs to evolve a plan to help industry scale down its manufacturing cost and enable it to compete in the global market. According to government officials, Prime Minister is unlikely to announce any relief in terms of electricity and gas tariffs, which are some of the major demands of the industry. Some of the incentives may include 3 percent rebate for yarn, 4 percent for fabrics, 6 percent for home textile and 7 percent for garments, removal of custom duty on raw cotton, 3 percent duty on manmade fabric except polyester and 10 percent sales tax on machinery import.
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