Pakistani textile sector calls for government support
During a joint press conference at PHMA House in Karachi, the southern base of Pakistan Hosiery Manufacturers and Exporters Association (PHMA), the chairman of Pakistan Apparel Forum, Muhammad Jawed Bilwani, called for the immediate release of $1.3 billion or 300 billion Pakistani rupees’ worth of sales tax refunds, reportedly owed to the country’s value-added textile sector by its national government.
The meeting, attended by representatives from PHMA, Pakistan Denim Manufacturers and Exporters Association and trade bodies for domestic cotton fashion and readymade garments, among others, drew particular attention to what Mr Bilwani described as a resulting “liquidity crunch” for exporters. Refund delays have already disrupted production, he said, in a high-cost business environment compounded of inflation and significant industry gas supply issues, for example.
Similarly, the president of Korangi Association of Trade and Industry (KATI), Faraz-ur-Rehman, has urged Pakistan’s government to reconsider its late November decision to impose a 5% regulatory duty on filament yarn. Cost of production “is already at the highest level” owing to the current climate, he told local media.
The Korangi industrial area, located in Karachi, is home to approximately 372 textile mills, according to KATI.
Earlier in December, Pakistan Cotton Ginners Association announced that cotton production was roughly 40% lower than last year’s harvest, a decrease of around 2.9 million bales, due in large part to this year's flooding.
Training socks made by Faisalabad-based hosiery, denim, yarn and knits producer Interloop.
Credit: Interloop via Instagram.
