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News Clips 28 March, 2015

[ Nigerian market has huge potential for Pakistani exporters: envoy ]
[ DLTL Order, 2015: government extends date for submission of claims ]
[ Decline in exports: PTEA seeks remedial measure to check shortfall ]

Nigerian market has huge potential for Pakistani exporters: envoy   [ top ]

Business Recorder, March 28, 2015
Newly designated Pakistani Ambassador to Nigeria Lieutenant General Agha M Umer Farooq (Retd) visited to Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) recently. 

He said that Nigerian market has huge potential for Pakistani exporters, textile products, spinning, pharmaceuticals and agricultural machinery, readymade garments traditional and western wear, therefore Pakistani businessmen should avail the opportunities in these areas in general and readymade garments in particular which consisting 50 percent Muslims population. 

While speaking on the occasion when Chairman PRGMEA (South Zone) Jawed Suleman asked Agha about the scope of readymade garments in Nigerian markets, he replied that garments exporters may easily strong their feet in Nigerian market since they are best in cotton growing but not good in manufacturing, so exporters may take advantage in this respect, besides in spinning. 

He said that Pakistan's business community is well aware of the market size of Africa and Nigeria could serve to be the best destination to exploit the potential. He said that Pakistan has a strong agro and industrial base. It has a vast potential to export most the products imported by Nigeria from other countries. 

On the question of Customs clearance he informed that he will meet ANF Director General in this regard. Jawed Suleman advised that there is need to adopt "Scanning System" for checking. Agha agreed with him. 

He said that frequent exchange of trade delegations, continuous liaison and exchange of information can prove important instruments to strengthen our trade and investment relations. For which he advised to Commerce Minister to formulate trade delegation for Nigeria in couple of months this year. Besides, he informed that he will establish a "Display Centre" in the Nigerian Embassy to facilitate our exporters to create business relationship with Nigerian Counterparts. In this connection Jawed Suleman advised him to secure a portion in Display Centre with the logo of PRGMEA where PRGMEA members may display its products. 

Regarding facilitation for Nigerian visas, he said that he is talking about the matter with the concerned authorities.- 

DLTL Order, 2015: government extends date for submission of claims   [ top ]

Business Recorder, March 28, 2015
The federal government has extended the date for submission of claims for Drawback of Local Taxes and Levies Order, 2015. According to State Bank of Pakistan (SBP), the last date for submission of DLTL Order, 2015 on export of value added sectors (excluding textile) was fixed at March 31, 2015. 

However, now, in terms of the Ministry of Commerce's notification No 1(26)2015-SO (TP) dated March 19, 2015, the federal government has extended the date for submission of claims under the said order up to May 15, 2015. 

The SBP has asked all authorised dealers to bring the same to the notice of all their constituents and process accordingly. 

Decline in exports: PTEA seeks remedial measure to check shortfall   [ top ]

Business Recorder, March 28, 2015
Pakistan Textile Exporters Association (PTEA) has expressed grave concern over 12.9 percent drop in exports in last month and demanded of the government to take immediate remedial measures to arrest this shortfall. 

Talking to newsmen here on Wednesday, Sohail Pasha, Chairman and Rizwan Riaz Saigal, Vice Chairman of the Association said that textile exports also witnessed 2.91 percent decline in February 2015 over the same month of the previous fiscal year and 9.96 percent drop over previous month. 

Giving details, they said that country exported textile goods worth $ 1.087 billion in February as against exports of $ 1.119 billion in the same month of previous year and $ 1.207 billion in previous month of January showing a hectic decline of 2.91 percent and 9.96 percent respectively. Export of value-added items also witnessed negative growth as cotton cloth down by 15.47 percent, bed wear 4.82 percent and towels 8.34 percent compared to the same month of previous fiscal. These may not sound like big numbers, but if the trend keeps up it could spell some amount of trouble for the economy, especially considering that the trade deficit is continuing to widen, they said and added that drop in textile exports is clear indication of the fact that textile industry, particularly the Punjab-based, is unable to tap its potential in accordance with its capacity. 

Pinpointing the prime reasons behind export decline, Sohail Pasha explained that high cost of doing-business and lack of competitive edge with regional rivals including unprecedented energy constrains and unavailability of funds are badly hurting the textile export growth. Value-added textile export sector is already facing severe global competition as regional countries are providing a lot of subsidies and incentives to its textile export sector to remain competitive in international market. 

Quoting the example of gas prices, he said that gas price in Pakistan is 6.27 dollars per MMBTU; which is at the higher edge than all competitors. Per MMBTU gas price in Bangladesh is 1.91 dollar, in India is 4.20 dollars while in Sri Lanka is 3.66 dollars. 

Recently, in a bid to give stiff competition to Pakistan, India has flexed its muscles by proposing huge subsidies to its textile exporters. Terming lack of funds another hurdle in export growth, he said there is a capital blockage for textile exporters as their major capital remain stuck up in refund cycle, causing a major dent to textile exporters. 

Vice Chairman Rizwan Riaz Saigal was of the view that now is the time that the repair has to be made otherwise decline in exports would put irreparable loss to economy. Competitors made huge investments due to the positive and business-friendly environment provided by their governments and taking advantage of the situation, they are creeping into our traditional markets throwing Pakistani textiles out. 

To secure interest of economy, PTEA office-bearers urged the government to bring the textile exports out of inflationary pressure and provide level-playing field. Textile export sector which is earning 60 percent of the total foreign exchange of the national economy should be accorded due importance