Rising expenses hurt competitiveness

The Express Tribune reported that Pakistan's hosiery and knitwear exporters are slipping in global competitiveness as production costs climb, refunds are delayed and compliance and regulatory expenses keep growing. The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has asked for urgent steps to shield the sector and protect existing export orders.

PHMA Central Chairman Zia Alamdar Hussain made the demand in a letter to the federal secretary commerce. He wants the Ministry of Commerce to quickly convene a consultative meeting with the Ministry of Finance, State Bank of Pakistan, Federal Board of Revenue and other relevant institutions. The session would review the sector's problems and devise workable measures to preserve orders and national competitiveness.

The letter cites a sharp rise in sea freight, with rates to some key markets up 1.5 to 2.5 times, alongside high energy tariffs, load-shedding, heavy taxes, liquidity strain and weak global demand. Exporters must either absorb the added cost, squeezing thin margins, or pass it on, leaving their goods dearer than rivals' products. To cushion this, the PHMA has proposed temporary Duty Drawback on Local Taxes and Levies (DLTL) support of 6% to 8% of FOB value per shipment for a limited period.