FAISALABAD: The Pakistan Textile Exporters Association (PTEA) urged immediate structural policy initiatives to revive the economy and stimulate economic growth. The association identified several key factors hindering Pakistan’s progress, including rising debts, tax issues, underperforming large-scale manufacturing, and high energy costs.
In a statement released on Thursday, Khurram Mukhtar, Patron-in-Chief of the PTEA, highlighted the importance of the large-scale manufacturing sector, which accounts for a significant portion of the country’s GDP.
He expressed concern over the negative growth experienced by this sector, particularly in light of existing challenges such as high inflation, a growing current account deficit. Mukhtar calls on the government to address these issues and save the industrial sector from further decline.
He emphasized the need to negotiate sustainable energy tariffs with the International Monetary Fund (IMF) and rationalize cross subsidies on industrial energy tariffs to support growth. Just raising energy tariffs is not going to work, strict enforcement requires to reduce T&D losses and full bills recovery. Current hike in gas and electricity tariffs is disastrous for the economy and lacks any wisdom
Mukhtar also highlights the impact of liquidity issues on export production, stating that delayed refund disbursements are causing severe financial hardship for exporters.
He urged for timely refund disbursements and the implementation of zero-rated GST on energy bills for export industries. Additionally, he stresses the importance of ensuring easy access to working capital for the industrial sector to promote industrialization and create job opportunities.
Khurram Mukhtar further emphasized the importance of mobilizing domestic resources to reduce reliance on imports and promote domestic industries. He believed that implementing efficient governance practices and digitalization can enhance efficiency, reduce corruption, and improve the business environment.
Khurram also advocates for the privatization of state-owned enterprises (SOEs) to improve their efficiency, attract investment, and reduce government burden. He pointed out that rival countries have successfully increased their market share in global trade through government support and calls for similar measures to revive Pakistan’s economy.
The PTEA called on the government to prioritize the industrial sector and take immediate action to implement structural reforms that will facilitate industrial revival, reduce the cost of doing business, and safeguard employment.
Copyright Business Recorder, 2024