LAHORE: The Ministry of Commerce (MoC) is planning to a hold a stakeholders’ consultation to chalk out ways to capture $20 billion export space ceded by China as a consequence of coronavirus disease (Covid-19).
According to sources privy to the matter, a few meetings in this regard have already taken place this week while the consultative moot would be held coming Monday.
During the meetings held earlier, the ministry had discussed the impact of coronavirus on international trade and how Pakistan could increase its market share by capitalising this opportunity.
Sources said that Monday’s moot would be attended by all concerned as Pakistan was already lagging in the region; India and Bangladesh were gearing up to capture the ceded export space and increase their market share.
India has already asked its industry to increase its production capacity and occupy the space ceded by China, sources added.
Talking to this scribe, All Pakistan Textile Mills Association (APTMA) Group Leader Gohar Ijaz said, “In order to capture $20 billion export market, we first need an immediate approval to the long-term textile policy and then we have to increase our capacity.”
Ijaz said after 10 years of stagnation, only long-term textile policy is required for Pakistan to kickstart investments.
“We are struck at maximum $25 billion exports for the last 10 years while Bangladesh has doubled its exports from $20 billion to $40 billion during the same period,” the APTMA official deplored.
Agreeing with Ijaz, APTMA Punjab Senior Vice Chairman Abdul Rahim Nasir said that the industry needs clarity from the government regarding energy tariff and long-term policy.
“If they (govt) want us to increase the country’s market share by capturing the space ceded by China, they will have to provide electricity at 7.5 cents/kWh and gas at $6.5/mmBtu for the next 10 years, besides immediately approving the long-term textile policy,” he said.
Nasir feared that Pakistan might lose “this once in a lifetime opportunity” if the above-mentioned steps were not taken.
APTMA Punjab VC Aamir Sheikh pointed out that the cost of polyester fibre in China was Rs125/kg while the same was Rs173/kg in Pakistan due to import and anti-dumping duties.
“If the basic raw material is 40pc more expensive and there are no duty drawbacks, then there is no way our final product can compete in exports,” he added.
Sheikh there were a lot of opportunities up for grabs in the international markets, but unfortunately, Pakistani exporters were spending most of their time in courts or running after power distribution companies regarding notified rate of power tariff at 7.5cents/kWh.
“We have no time to concentrate on marketing or capturing the ceded market share,” he said. “The 70pc increase in power tariff will lead to closure of industry and reduction in exports.”
He lamented that energy prices were dropping across the globe but the same were shooting up in Pakistan.
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