The Pakistan Hosiery Manufacturers Association (PHMA) has pledged to collaborate closely with the new government to boost exports and reignite growth in the value-added textile industry.
Farrukh Iqbal, Zonal Chairman, PHMA, emphasised the importance of supporting the value-added apparel sector, particularly in light of the declining exports to EU countries, which he deemed a significant concern.
Iqbal applauded the recent allocation of Rs 65 billion by Prime Minister Shehbaz Sharif's government for clearing pending refunds of exporters up to the previous month of 2024. He commended the efforts of key officials including Finance Minister Muhammad Aurangzeb and Commerce Minister Jam Kamal Khan, expressing optimism that this move would invigorate confidence among exporters and stimulate the export sector.
However, he cautioned against the continuous escalation of energy prices, warning that persistent hikes in gas and power rates could exacerbate inflation and render Pakistani textile products uncompetitive in the global market. Iqbal urged the government to ensure a level-playing field by maintaining regionally competitive energy tariffs and upholding schemes such as the Duty Drawback of Local Taxes and Levies (DDTL).
Highlighting the decline in exports to the EU, Iqbal pointed out a 7.54 Y-o-Y per cent decline in the first seven months of the current fiscal year, attributing it to reduced demand in various European regions. He stressed the need for continuation of concessionary energy tariffs to foster a level-playing field with regional competitors.
PHMA leaders Amanullah Khan and Khawaja Musharaf Iqbal echoed these sentiments, emphasising the challenges faced by Pakistani exporters despite preferential access to EU markets under the Generalised System of Preferences Plus (GSP+). They emphasised the urgency of resolving liquidity issues in the industry and adopting new technologies to enhance Pakistan's export competitiveness.
