KARACHI: Crippling energy crisis coupled with appreciation in the value of rupee pushed the bedwear exports down by 20 percent in the first quarter of current fiscal year.
According to the Pakistan Bedwear Exporters Association (PBEA), the fall in bedwear exports is mainly due to the fact that exporters were reluctant to book new orders owing to rapid appreciation in the rupee value from around Rs107 to Rs97 a dollar.
The PBEA is of the firm opinion that high mark-up rate and revaluation of rupee have made a crippling affect on economy and exports.
The association claims that the government instead of providing relief to the energy crisis-hit industry raised the cost of doing business through various measures, adding to the woes of already burdened trade and industry.
“Consequently, reduced export orders have resulted in unemployment in the bedwear industry. Due to revaluation of rupee, the buyers are now demanding decrease in prices,” an office bearer of the association informed.
On the other hand, the exporters are not getting their outstanding dues against sales tax, duty drawback from the Federal Board of Revenue (FBR). Similarly, the Commerce Ministry is not paying refunds held by the Trade Development Authority of Pakistan, which has caused severe liquidity crunch for the industry.
It is to be noted that the Federal Tax Ombudsman (FTO) has pinpointed that Rs100 billion have been lost in fake sales tax (VAT) refund claims. The FTO also submitted a detailed analysis to the FBR on failed tax reforms, and advised it to reverse the reforms.
Earlier, the trade and industry had informed the FBR that “reforms” in sales tax were only encouraging corruption.
