Expressing concern over dwindling returns and closing units in Pakistan, the country's largest forex earner, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has said the inordinate delay in announcement of the much trumpeted Textile Package is hitting them hard.
The current scenario is extremely worrying for the precious foreign-exchange earning industries and the ever increasing cost of utilities and inputs is causing closure of many units across the country, Arshad Aziz, acting Chairman of PRGMEA)said in a statement in Karachi.Expressing concern over dwindling returns and closing units in Pakistan, the country's largest forex earner, Pakistan Readymade Garments Manufacturers#
The sector, which was the biggest foreign exchange earning sector, once grossing $4 to $5 billion before the PPP regime, is expected to earn less than two billion dollars during current fiscal year,” the media quoted Aziz as saying in the statement.
He said it was a shame that countries like Bangladesh that imported cotton yarn from Pakistan, earned $ 15 million by exporting garments, while competitors like Sri Lanka, Vietnam and India grossed even more from their garments exports.
“Textile Package delay has created further unemployment and closure of many units, which could not survive due to funds stuck up… with no package announced to compete with rival countries which have given incentives to their exporters.. We are neither able to increase our exports nor sustain and have in fact lost our market share to the competitors,” Arshad said.
“The incentives to the exporters, which had increased their export under Generalised System of Preferences (GSP) plus facility by the European Union, was facing hardships due to stuck up capital with the government to the tune of billions of rupees and rendered us unable to exploit this opportunity,” he added. (SH)
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