Exporters seek govt support to stem decline

Dawn reported that textile and clothing exporters have pressed the government for structural reforms and short-term financial relief to halt the sector's slide and defend Pakistan's share of overseas markets. Commerce Secretary Jawad Paul chaired the high-level session on Tuesday, which examined the industry's difficulties and the policy options for restoring export competitiveness. A source cited by Dawn said issue-based subcommittees had been formed to study these concerns and report back within 15 days.

The central demand is a six to eight per cent refund of local taxes and levies, known as DLTL, on all export sales, conditional on a 10pc increase in exports. Exporters argued the incentive would keep production running, lift shipments and stop further loss of market share amid tougher trading conditions. Power costs were another major worry, with industry representatives citing a Rs56 billion discrepancy in tariff calculations, of which the Power Planning and Monitoring Company (PPMC) accepted Rs26bn.

The power tariff matter will now go to the Power Division at a meeting on Friday (Oct 16), and the commerce ministry has been asked to put its advice to the prime minister ahead of a final decision. Other complaints covered Export Finance Scheme anomalies, including varying rates, a fixed 4.5pc financing rate that some banks did not apply, and tax refund delays from the FBR that strained liquidity.