KARACHI: Strongly refuting the government claims “that exports have increased” Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum and Chief Coordinator, Value Added Textile Forum said this was really a wrong impression given to the people and is merely “wishful thinking”.

Bilwani stated that “the ground facts are that the exports of all the major export-oriented goods had actually declined” which he supported with the following actual facts, figures and statistics:

He stated that “Overall exports have declined by approx 5 percent. Exports of Textile Group declined by 1.78%; Food Group declined by 1.42%; Petroleum group and coal by 18.82%; Other manufacturing group declined by 17.58%; Leather Tanned declined by 11.36%; Leather goods declined by 4.74%; Chemical and Pharmaceuticals declined by 16.49%; Engineering goods declined by 30.64%.

(Source PAKISTAN Bureau of Statistics for the year 2014-2015 as compared to 2013-2014)

Bilwani stated that it was indeed a great irony that Pakistan is an Agricultural Country but even Exports of Food Group declined by 1.42%. Bilwani wondered that when exports of major categories had declined considerably, the Government’s claim on the increasing exports is pure hogwash.

He further rued that if GSP PLUS was not granted, the total exports of Pakistan would have faced a decline of approx. 21% instead of 5% as exports to regions other than EU also declined considerably. From the total exports of Pakistan to all countries, Exports to Europe is

25% and other than Europe is 75%.

He further lamented that Pakistan is on the watch list of EU and with the recent hangings which is against EU 27 Conventions and further implementations of these 27 conventions by Pakistan, GSP PLUS facility would most likely be withdrawn for Pakistan.

He feared that Exports Figures will be worst in forthcoming year 2015-16 as Sales Tax Rate has been increased by 50% in the Budget 2015-16 which blocks the huge amount of liquidity of the exporters.

In view of the steep decline in exports, it is imperative that immense problems and hurdles be removed to pave the way for enhancing and boosting our nation’s exports in the best interests of the nation’s economy.

Immediate proposals to remedy this serious issue are as under:

1. “no payment no refund” system for exports to save futile exercise wasting precious time of FBR as well as exporters to declare textile sector zero rated at the manufacturing stage.

2. Sales tax collection on local sales. Sales tax be collected at retail stage only that will ensure revenue on the goods arrived in the country through afghan transit trade, smuggling and under invoicing. It will take care of entire local consumption.

3. Textile sector must be declared as separate head of account in gas tariff structure and imposition of GIDC must be stopped forthwith as we are already higher in tariff (as given in the below chart) compared to our competing countries.

Pakistan’s Gas Tariff $6.27 per MMBTU (highest among the 3)

India’s Gas Tariff $4.66 per MMBTU

Bangladesh’s Gas Tariff $1.86 per MMBTU

4. Similarly tariff of power should be brought down at par with regional competitors declaring as separate head of account in tariff structure.

Pakistan Electricity tariff $0.15 KWH (highest among the 3)

India Electricity tariff $0.13 KWH

, Bangladesh Electricity tariff $0.09 KWH

5. Immediate refund of all outstanding claims of sales tax, dltl and customs rebate etc.

6. Front loading on the raw materials for exports must be done away with.

7. Priority must be given to the textile sector in the supply of all essential utilities.

8. We would request that textile sector needs a long term policy to meet the requirements and challenges to compete with regional competitors, therefore we would suggest series of meetings with gop to formulate such policy document.

Here, I would also like to pledge against the anticipated support by the Government of Pakistan a minimum of 50% rise in exports within the next three years which means a surplus current account and trade account of Pakistan.—PR