KARACHI: Zahid Mazhar, chairman, All Pakistan Textile Mills Association Sindh-Balochistan Region on Monday said it was imperative to increase exports substantially and only the textile industry was capable to double its exports in the next five years.
He said the GDP growth was unlikely to increase beyond 3.3 percent this year. “Rate of inflation may rise to 12 percent by end of June 2019, rate of unemployment may rise to 7.0 percent, budget deficit and current account deficit will be around 7.0 to 7.25 percent and $12 to $12.5 billion,” he said.
He pointed out that the manufacturing sector of Pakistan was already overburdened with the high rate of taxation and could not sustain additional tax burden. “Therefore, no additional tax should be imposed on the manufacturing sector which will lead to further de-industrialisation and shrinkage of GDP.”
He also demanded the government to thoroughly investigate and review the Energy Policy which was resulting in high tariff rates and unjustified profits earned by the power companies.
APTMA chairman said the tax refunds of the textile exporters were stuck for more than a year in most cases. “The government had announced issuance of promissory notes by end of February this year to liquidate these refunds, but till date these have not been issued.”
Pakistan has already lost its share in world textile and clothing trade from 2.2 percent in 2006-07 to 1.7 in 2017-18 and would lose further, he added.
While highlighting the issues hurting the viability of the textile industry against regional competitors, he said that high cost of doing business, inordinate delay in payment of refunds of sales tax, income tax and duty drawback to exporters, highest interest rate in the region, high costs of energy, shortage of raw material, shortage of credit availability as well as working capital, lack of institutional support, low skill and productivity were some of the major issues.
He urged the government to give immediate attention to the cotton crop, which had witnessed a massive decline over the last four years.
Published On : 14-05-2019
Source : The International News
