Textile exporters of the country have demanded the continuation of Duty Drawback of Taxes (DDT) scheme to maintain the growth momentum of exports and uplift the economy.
In a statement on Monday, Pakistan Textile Exporters Association (PTEA) Chairman Sohail Pasha termed growth in textile exports boon for the country’s economy. He added that the industry was capable of fetching $25 billion in exports for the country.
“Pakistan’s economic outlook for 2022 looks strong as the country posted a growth of 5.37% in fiscal year 2020-21 which is substantially higher than the previous two years,” he said. “Several indicators reveal that country’s economy has done well despite Covid-19 pandemic setbacks and textile sector is among major contributors.”
He said that the textile industry was on path of recovery following the removal of Covid-19 restrictions and its exports had witnessed an expansion of 26% year-on-year to $9.38 billion in the first half of fiscal year 2021-22.
Higher textile exports came on the back of robust growth in high value-added products, he said.
He held the view that Pakistan needed to increase private investment and enhance export volume to sustain strong economic growth.
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“In order to gear up textile exports, the Duty Drawback of Taxes (DDT) scheme was offered to textile sector businessmen based on their exports which resulted in significant growth in foreign shipments,” Pasha described.
He underlined the need for continuity of the scheme to sustain the growth momentum.
This sector not only provides massive job opportunities but also enjoys a mammoth share in the exports of the country coupled with a magnanimous room for value-added textile products.
Highlighting the major initiatives of the government aimed at boosting exports, the PTEA chairman said that provision of energy to export-oriented industries at regionally competitive prices (electricity at 9 cent per kWh and gas at $6.5 per mmbtu) yielded positive outcomes.
However, he called for ensuring smooth energy supply for the export sector at regionally competitive prices.
Citing that the energy package was not a subsidy, he requested the government to conduct cost-of-service study and set tariffs accordingly.
Published in The Express Tribune, February 1st, 2022.
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