PHMA Raises Concerns Over High Business Costs

The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has raised concerns over the detrimental impact of the high cost of doing business on the country's value-added export-oriented knitwear industry. The industry is facing significant challenges, particularly due to the escalating gas and power tariffs, alongside frequent revisions in policy rates and fluctuations in the rupee-dollar exchange rate.

During an interactive session at the PHMA Zonal office, chaired by PHMA North Zone Senior Vice Chairman Amanullah Khan, members highlighted the urgent need for addressing these issues. They emphasized the critical role of affordable energy in sustaining the growth of the export-oriented textile sector and urged the Central Bank to allocate funds for renewable energy schemes, specifically for solar energy financing.

The participants also called for the expedited release of pending claims, such as DLTL, DDT, Customs Rebates, and Sales Tax refunds, to alleviate the liquidity crunch faced by exporters. They advocated for the restoration of the zero rating regime and proposed a separate Sales Tax regime for the export sector to ensure prompt refunds within 72 hours of claim filing.

The apparel sector, which has been consistently contributing to export growth, requires long-term policy measures to further enhance its performance and boost foreign exchange earnings for Pakistan.

The challenges confronting Pakistan's knitwear industry underscore the urgent need for comprehensive reforms to address the high cost of doing business and ensure a conducive environment for export-oriented sectors. By implementing strategic measures, such as facilitating renewable energy financing and streamlining tax refund processes, the government can support the growth of the apparel sector and enhance the country's export potential.