Textile exports hit record high of $1.503 billion in September

Staff Reporter BOL News

09th Oct, 2021. 06:07 pm
Value-added textile exporters slam 300% higher taxes

KARACHI: Pakistan’s textile exports in September 2021 surged 28 per cent to a record high of $1.503 billion, up 27.11 per cent, compared with $1.189 billion recorded in September last year, the All Pakistan Textile Mills Association (Aptma) tweeted on Saturday.

During the first quarter of FY22, the textile exports rose to $4.437 billion, up 28 per cent, compared with $3.479 billion recorded in the corresponding period last year.

Apparel and clothing, knitted or crocheted exports increased 32 per cent to $390 billion in the first quarter, while articles of apparel and clothing accessories surged 24 per cent to $278 million.

The export of other made-up textile articles surged 17 per cent to $481 million, while cotton exports increased 31 per cent to reach $291 million-mark in the first quarter of FY22.

Though the government has its policy measures in place along with the vaccination for the Covid-19 and to meet the losses to industry, the government needs to stress upon reduction in compliance costs.

These compliance costs included borrowing from the banks, border compliance and tax-related compliance.

For this purpose, there is a need to have integration between all the authorities and institutions involved with the monitoring framework in place.

The cost of doing business, especially fuel and energy prices, continued to show a rising trend during the year under review. Although the State Bank of Pakistan (SBP) has kept the policy rate stable, pressure on the rupee vis-à-vis other currencies, owing to huge trade deficit, remains a major obstacle for foreign direct investment in the country.

However, Pakistan’s exports of textile and clothing rebounded in the last couple of years, mainly due to the value-added sectors and posted a robust growth.

The government has already abolished duty and taxes on industrial raw materials and is paying off pending refunds to the exporters.

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