Pakistan Textile Exporters Association (PTEA) has demanded continuation of Duty Drawback of Taxes (DDT) incentive to continue the growth momentum in national exports.
In a statement, PTEA Chairman Sohail Pasha said that textile sector was capable of achieving $25 bn exports for the country. He said that country’s economic outlook for 2022 looks strong as it had posted a growth of 5.37 percent in FY 2021, substantially higher than the previous two years.
He said that several indicators reveal that country’s economy had done well despite of Covid-19 pandemic setbacks and textile sector was among the significant contributors. He said that textile industry had now picked up a growing pace following the removal of Covid-19 restrictions and witnessed a sharp surge of 26 percent year-on-year to $ 9.38 bn in the first half of FY 2022. Higher textile exports came on the back of quantum growth in high value-added products, he said and added that Pakistan still need to increase private investment and enhance export volume to sustain strong economic growth.
Highlighting the role of textile industry, he said that it comprises 46 percent of the total manufacturing sector of the country, provides employment to around 25 mn Pakistanis and contributes 8.5 percent to the GDP.
Pasha also appreciated major initiatives of the government to boost exports including provision of energy resources to export oriented industries at regionally competitive prices (Electricity @ 9 cent/kwh and Gas @ $6.5 per MMBTU) and said that these initiatives brought positive outcome registering upward growth in exports.
He also lauded the initiative to streamline refund process and said that declining share of China in the US apparel market which had already created room for Pakistan and other competitors to enhance their shares in apparel exports. He said that in order to gear up textile exports DDT incentive was allowed to textile exporters based on their exports which resulted in significant growth in textile exports. He underlined the need for continuity of drawback of local taxes scheme to sustain the growth momentum.
