PTC sounds alarm on export slump and corporate exodus | The Express Tribune
Key Takeaways
- Pakistan's exports fell by 3.83% in the first quarter of the fiscal year, with September seeing a sharp 11.71% drop.
- The trade deficit widened significantly to $9.37 billion due to a 13.49% increase in imports.
- Economic pressures have forced industry closures, such as Gul Ahmed Textile's apparel segment, and multinational companies exiting or reducing operations.
- PTC criticized FBR amendments to the Export Facilitation Scheme (EFS), especially the exclusion of cotton and yarn, calling the move economically reckless.
- The council urged the government to implement immediate reforms, including competitive energy rates and policy stability, to prevent further industrial decline.
The Pakistan Textile Council (PTC) voiced alarm on Friday regarding the substantial decline in national exports, which fell by 3.83% in the first quarter, and the subsequent closure of industries, exemplified by Gul Ahmed Textile shutting down its apparel segment.
This economic downturn is exacerbated by a widening trade deficit of $9.37 billion, driven by a 13.49% surge in imports, putting immense pressure on the country's external accounts.
PTC cited rising energy costs, heavy taxation, and policy uncertainty as primary factors causing major multinational companies to reduce operations or leave Pakistan.
PTC Chairperson Fawad Anwar demanded immediate government intervention, including regionally competitive energy rates and improved tax policies, warning of further economic contraction without swift action.
Furthermore, the council strongly objected to the Federal Board of Revenue's (FBR) recent amendments to the Export Facilitation Scheme (EFS), labeling the exclusion of cotton and yarn as an unjustified 'tax on exports.'
Recommendations included withdrawing damaging clauses, maintaining a reasonable input utilization period, and allowing unused materials to be carried forward to support the struggling value-added export sector.
