ISLAMABAD
Trade deficit of the country will reach $32 billion during the current fiscal year mainly due to decline in the exports which were $25bn in 2013 and now stand at $20bn, it was learnt.
According to details, total exports of the country during the on-going fiscal year stand at $52bn, while imports $20bn and the amount of loans have increased to $13bn.
Sources in the commerce ministry said exports of the country in 2013 when Pakistan Muslim League-Nawaz government came into power were at $25bn which has now decreased to $20bn mainly because of poor policies. They said the incumbent regime has not given due attention for brining improvements in the exports of the country. Out of total export volume of the country, 60 per cent export share is of the textile sector, sources said.
Interestingly, PML-N government has so far failed to implement Textile Package worth Rs 180bn. The PM’s textile package, worth Rs 180, billion has envisaged payments of Rs 7.29bn per month. But, only rupees two billion has been released till May, 2017. Similarly, a meager amount of rupees four billion has been allocated in the federal budget FY 2017-18. Furthermore, customs duty and sales tax has been re-imposed on import of cotton just four month after the announcement of the package.
Chairman All Pakistan Textile Mills Association (ATMA) Amir Fiaz said due to nonpayment of drawbacks and reversal of initiatives announced in the package, manufacturer-cum-exporters are confronted with cancellation of export orders, delayed investment initiatives. Consequently, it is difficult to achieve overall export target at 12 per cent of GD (US $ 36billion) set in the federal budget 2017-18.
Chairman APTMA further informed that almost 130 units of textile have shut down businesses in recent past due to poor policies and absence of implementation on promises which the ruling elite made during meetings with the APTMA. He feared that 100 more companies expected to wind up their businesses in near future mainly due to the ignorance of the rulers. Unfortunately the government has so far not made payments of all refunds to improve the liquidity of the textile industry, he said
“And, we request payment of all ending sales tax refunds and duty drawbacks band incentives schemes,” Chairman APTMA said, adding, “Textile industry requests immediate reduction in electricity tariff to Rs 7 per kilowhatt hour (kWh) without levy of surcharge.”
