FAISALABAD. Continuity of the original textile policy is imperative for sustained economic growth and Government must withdraw the curtailment of repatriation period of foreign proceeds from 180 to 120 days, said Mr. Imran Mahmood Sheikh Senior Vice President Faisalabad Chamber of Commerce & Industry (FCCI).
Commenting on the decisions taken on the directive of Financial Action Task Force (FATF), he said that textile is the mainstay of the national economy which has around 60% share in total national exports. He said that the fifth wave of Corona (Omicron) has a crippling impact on the global economies and hence we must incentivize the export sector to maintain its growth trajectory in addition to bridging the import and export gap. He said that in 2020 our textile export stood at 7.44 billion dollars which jumped to 9.39 billion dollars in 2021 due to the incentives enshrined in the textile policy. He termed this growth as satisfactory in view of the ill impacts of corona and said that during the first six months of the current fiscal this sector performed well. He said that during the month of December the export of T-shirts recorded a phenomenal growth as compared to the same month of last year. “This category recorded 32% growth in quantity and 46% in value”, he said and added that men’s garments also recorded 16% growth in quantity and 26% in value. Similarly, jersey and cardigans also recorded quantity wise growth of 38% while it was 55% in value. He also quoted figures regarding home textile, cotton fabrics, cotton yarn and women garments which recorded a decline in quantity while it showed value wise increase of 2%, 17%, 11% and 13% respectively. He said that increase in export of cotton yarn has created shortage and price hike in domestic market and hence Government must clamp complete ban on its export so that it could be used to enhance the exports of value-added products. Regarding reduction in the period of repatriation of foreign proceeds, he said that most of the EU countries open LC (Letter of Credit) for 180 days and any change in it would have a negative impact on our overall exports. He said that the Government must revisit this decision and frame viable policy in consultation with the concerned stakeholders.