Exchange rate be controlled, taxes be reduced on import of raw material
Karachi (Pakistan Point News - 28th Aug, 2021) Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Saturday said monthly exports of textile have reached to the mark of almost 1.5 billion dollars which is an encouraging sign.
Textile exports during last year’s July were 1.272 billion dollars which have now jumped to 1.
471 billion dollars, a jump of 15.61 percent, he said.
Mian Zahid Hussain said that local production of cotton should be increased and coupled with some other measures to boost exports.
Talking to the business community, the veteran business leader said that the exports sector also rely on imports to manufacture products which sometimes reach to 35 percent, therefore, import duties on import of raw material should be reduced to boost exports.
He said that cotton production should be enhanced as 49 thousand tonnes of raw cotton has been imported in a month which is hitting the forex reserves and increasing cost of doing business.
He noted that ease in lockdowns in the US and EU have contributed to enhanced exports which have prompted an increase of 96 percent in import of textile machinery which also reflects confidence of importers.
He suggested controlling hike in value of the dollar, resolve the issue of expansive energy and tackle other issues to improve confidence and exports.
The business leader said that pandemic has reduced the demand for textile products globally which is now improving while Pakistan was getting more orders as the situation here was far better then India and Bangladesh.
Policymakers should try to benefit from the situation and resolve outstanding issues of the textile sector which include prompt payment of refunds so that their liquidity problems could be resolved, he demanded.
