Addressing rising costs, arresting decline: PTEA wants 6-8pc DLTL support tied to 10pc rise in exports

Textile exporters, represented by the Pakistan Textile Exporters Association (PTEA), want temporary Drawback of Local Taxes and Levies (DLTL) support of 6-8 percent, conditional on export growth of 10 percent, according to Business Recorder. The request is part of a wider package of structural changes meant to offset rising production costs and reverse a slide in shipments. It was tabled at a Commerce Ministry meeting on October 13, which followed a PTEA warning issued on October 7.

Power costs took centre stage, with industry linking a claimed Rs56 billion anomaly to cross-subsidies affecting B3 and B4 industrial power tariffs. Industry representatives added that the Power Planning and Monitoring Company accepted Rs26 billion of it, and a Power Division follow-up is set for 16 October. Freight charges to major overseas markets have also jumped 1.5 to 2.5 times in certain cases.

Exporters also flagged delayed tax refunds and say some banks are not applying the 4.5 percent Export Finance Scheme rate as prescribed. To replace EOBI, WPPF, WWF and other labour-related contributions, they proposed a 0.10 percent deduction on sales, citing an all-inclusive labour cost of $270 per worker. Two sub-committees will report within 15 days, but industry says permanent reforms in energy, tax, finance and logistics are needed to keep buyers.