Apparel Forum Urges Govt to Resolve Issues Faced by Textile Sector

Chairman of the Pakistan Apparel Forum (PAF), Jawed Bilwani, has warned that if the government does not address the problems of the textile sector, the sector will face further decline.

He urged the government to take remedial measures in this regard.

In October 2022, textile exports fell to $1.335 billion from $1.6 billion in the corresponding month of the previous year, a 16.56 percent drop. The PAF Chairman said that this has led to a decline in the growth rate of textile exports, which had risen by 26 percent during the previous fiscal year.

The chairman claimed that if the government delivered a continuous supply of electricity and gas, textile exports would have grown by more than 26%.

This projection, however, was now subject to the government’s adherence to the new textile policy, the continuation of regionally competitive energy tariffs (RCET) for both gas and power, the release of sales tax refunds within 72 hours of RPO approval, and the maintenance of a stable and adequate gas and power supply.

Furthermore, the PAF Chairman demanded that “Raw materials and accessories, machinery and spare parts which are being imported should be allowed without any impediment and permissions to imports whatsoever.”

The suspension of the Drawback of Local Taxes and Levies (DLTL) is another significant contributor to the drop in textile exports. It has been included in the Five-Year Textile Policy, like prior policies, but the commitment has not been kept.

The chairman added that “Continuation of DLTL and swift refunds of sales tax against exporters’ claims hold the key to enabling exporters to achieve their export target without facing any liquidity problems and pressure.”

He called on the government to address the issues faced by the industry, claiming that in the months to come, the textile exports would suffer a further decline otherwise. He added that this would hurt the country’s economy, sustainability, and development.