Soaring costs force PHMA to seek export support

The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has asked the government for temporary export relief equal to 6-8 per cent of FoB shipment value, according to Business Recorder. Speaking at a consultation convened by the commerce ministry, PHMA Central Chairman Syed Zia Alamdar Hussain pressed for quick steps to lower production costs. The association warned that financial strain could put existing orders, overseas clients and Pakistan's standing in global markets at risk.

The association proposed a time-limited drawback on local taxes and levies (DLTL) so exporters could absorb sudden cost jumps and keep their buyers. It also asked authorities to apply the 4.5 per cent end-user rate under the Export Financing Scheme uniformly, since some exporters still face higher borrowing charges. PHMA objected to abrupt levies that cannot be passed on to overseas buyers, and argued that provincial holidays interrupt round-the-clock production and add labour expenses. It wants only federal gazette holidays observed for export units, because exports are a federal subject.

Ocean freight charges have climbed 1.5 to 2.5 times at some major destinations, squeezing thin margins and weakening Pakistan's price competitiveness against regional suppliers. Several member firms reported layoffs, which the association linked to historically high costs driven by power and gas tariffs, outages, levies, delayed refunds and compliance expenses. The chairman cautioned that regaining orders lost to rival countries would be very hard.