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Pakistans hosiery and knitwear export industry is facing growing pressure as rising production expenses, high freight rates, delayed tax refunds and increasing regulatory costs weaken the sectors ability to compete in international markets, as reported by The Express Tribune.
According to The Express Tribune, the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has urged the federal government to take immediate steps to protect export orders and prevent further erosion of Pakistans position in global apparel markets. PHMA Central Chairman Zia Alamdar Hussain made the appeal in a letter to the federal secretary of commerce. The association called for an urgent consultative meeting involving PHMA representatives and officials from the Ministry of Finance, State Bank of Pakistan, Federal Board of Revenue and other relevant institutions. The proposed meeting would examine the sectors difficulties and develop practical measures to support exporters and maintain international competitiveness. The industry is reportedly confronting a combination of higher manufacturing costs, expensive freight, electricity shortages, elevated energy tariffs, heavy taxation, liquidity constraints and intensifying competition from regional producers. Weak demand in international markets has added to the difficulties, making it harder for Pakistani manufacturers to secure fresh orders while retaining existing buyers. A sharp rise in ocean freight has further increased the burden on exporters. According to the PHMA, shipping costs to several important international destinations have risen between 1.5 and 2.5 times, pushing up the final landed price of Pakistani goods. Exporters now face the choice of absorbing these additional expenses and accepting narrower profit margins or transferring the costs to overseas buyers, potentially making Pakistani products less competitive than those offered by rival countries, as cited by The Express Tribune. PHMA has therefore asked the government to provide temporary relief against the surge in production, energy and transportation costs. Among its proposals is a temporary Duty Drawback on Local Taxes and Levies (DLTL) incentive of between 6 per cent and 8 per cent of the Free on Board value, calculated on a shipment basis for a limited period, as reported by The Express Tribune. (ANI)
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