Bedwear export plummets by 20 percent in dollar term (Pakistan)

Bedwear export has plummeted by 20 per cent in dollar term while 26 per cent decline depicted in quantity, despite having GSP Plus status; observed by Federal Bureau of Statistics (FBS) in its latest statistics for September, 2014. According to Pakistan Bedwear Exporters Association (PBEA), the bedwear industry was expecting the decrease due to wrong policies of the government such as electricity and gas loadshedding, high bank mark-up rates and re-valuation of the rupee by the finance minister.

It said that decrease in the bedwear exports took place because exporters did not take new orders due to abrupt re-valuation of rupee from about Rs 107 to about Rs 97. Moreover, it said that decline in bedwear export had not only increased unemployment but also decreased in receipt of dollars as buyers were requesting to reduce prices.

On the other hand, sales tax refunds and duty drawbacks have also been stuck by the Federal Board of Revenue and non-payment of the DLTL from the Ministry of Textile. The PBEA said that Trade Development Authority of Pakistan (TDAP) had also stopped issuing refunds and held the Ministry of Commerce responsible for the TDAP's action. It said that no government official bothered to meet with exporters, despite hue and cry that could result in creating shortage of foreign exchange and unemployment in the country.

Furthermore, it said that tax reforms was full of corruption, which had been endorsed by the Federal Tax Ombudsman (FTO) in its report that suggested sales tax (VAT) encouraged Rs 100 billion fake refund claims. It said that the FTO while submitting detailed analysis to the FBR on the failed tax reforms measures directed the board to reverse so-called tax reforms.

It said that Nawaz Sharif during last tenure used to interact with businessmen, which was missing during this time. The association believed that the PML-N had centralised power in few hands not because they were capable but being family members or close friends and associates, tarnishing the country's image.

It said that most experienced and honest elected or unelected and bureaucrats were being sidelined because they did not fall into the core group of people whom the government trust and added that only "my people for all jobs" was not a recipe for success. It hoped that alarm bell would ring to save Pakistan's economy, which will increase employment and foreign exchange. The PBEA also urged Prime Minister Nawaz Sharif and Finance Minister Ishaq Dar to look into the issue and take remedial measures to avoid slipping hard fetched markets and further decline in exports.