PM asked to save value-added sector
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Pakistan's $11 billion export-oriented value-added industry, which contributes nearly one-third of total exports, has issued a strong SOS appeal to Prime Minister Shehbaz Sharif, saying that recent budgetary measures are set to derail export-focused sectors at a critical time.
In a joint statement, Pakistan Readymade Garments Manufacturers and Exporters Association, Pakistan Hosiery Manufacturers Association, the Surgical Instruments Manufacturers Association, Sialkot Chamber of Commerce and others demanded the immediate revival of the Final Tax Regime and restoration of the Export Facilitation Scheme (EFS) in its original structure.
They expressed concern that despite the government's slogan of export-led growth, the reality on the ground was entirely the opposite. "The government always talks about promoting exports, but in practice, no department seems to be on board."
They pointed out that in the budget speech, the finance minister uttered the word "export" only once and that too in a negative context in order to impose duty on imported yarn under the EFS.
Addressing the prime minister, the joint statement said, "We urge you to intervene immediately and convene an emergency meeting with leading export associations before this budget is passed. If this situation persists, Pakistan's most reliable foreign exchange earning sector will suffer irreparable damage." In such a policy environment, they cautioned, the government's vision of taking exports to $100 billion under Uraan Pakistan was simply not possible.
Industry leaders categorically said that they were not asking for subsidies, exemptions or special treatment, but just wanted a level playing field to compete globally. International buyers are actively seeking long-term clarity and stability in the EFS framework as Pakistan has a chance to attract businesses being diverted from China.
The Final Tax Regime has been replaced by complex procedures, audits and refund hurdles.
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