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ReturnPakistan: Indian export package generates fear in textile industry
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PublishDate：
2007-07-16 13:58:00
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KARACHI: The export package announced, with an aim to compensate the losses suffered by exporters due to appreciation of the Indian rupee, by Indian finance ministry for its different exports, especially the textile industry, has developed fear in the minds of domestic textile industry.
The domestic textile exporters fears that textile industry in Pakistan will now be more costlier for its foreign buyers, by almost 5-10 percent.
Almost all the associations, which are involved in exports of textile and its made-ups, are perplexed over the situation and believe that the Indian export package would help Indian exports to get a boost, besides giving a tough time to Pakistani exporters on the international front.
Further, the new package, comprising raise in duty draw back by 10 to 40 percent of existing rates would also enable the foreign buyers to opt for Indian commodity on lower prices.
Mushtaq Ali Cheema, the federal textile minister commented that although the trade policy is expected to be announced during the next few days, the federal government has already informed the exporters that it would not give any relief to them and has earlier also rejected the textile exporters' plea for subsidies and cash rebate by saying that this was not the era of subsidies.
On the other hand, the two weeks earlier, the Indian government has appreciated its currency by 10 percent and the dollar, after the depreciation, is available at 40 Indian rupees as against the Rs 44 in the last week of June.
The Indian Commerce Ministry has announced two percent reduction in interest rate on pre and post-shipment credit, besides DEPB rates have been enhanced by three percent for nine sectors, including textile, readymade garments, leather products etc.
The local exporter in Pakistan pointed out that after the appreciation in Indian rupee, they were receiving a lot of inquires from the US and European textile buyers, but now after the package is announced, it is expected that these orders will once again go back to India.
Keeping in view the situation, they stressed upon the Pakistan government to announce some relief package for exports, especially for textile sector, which was the backbone of the country's industry as well as exports.
Source:Industry Website
The domestic textile exporters fears that textile industry in Pakistan will now be more costlier for its foreign buyers, by almost 5-10 percent.
Almost all the associations, which are involved in exports of textile and its made-ups, are perplexed over the situation and believe that the Indian export package would help Indian exports to get a boost, besides giving a tough time to Pakistani exporters on the international front.
Further, the new package, comprising raise in duty draw back by 10 to 40 percent of existing rates would also enable the foreign buyers to opt for Indian commodity on lower prices.
Mushtaq Ali Cheema, the federal textile minister commented that although the trade policy is expected to be announced during the next few days, the federal government has already informed the exporters that it would not give any relief to them and has earlier also rejected the textile exporters' plea for subsidies and cash rebate by saying that this was not the era of subsidies.
On the other hand, the two weeks earlier, the Indian government has appreciated its currency by 10 percent and the dollar, after the depreciation, is available at 40 Indian rupees as against the Rs 44 in the last week of June.
The Indian Commerce Ministry has announced two percent reduction in interest rate on pre and post-shipment credit, besides DEPB rates have been enhanced by three percent for nine sectors, including textile, readymade garments, leather products etc.
The local exporter in Pakistan pointed out that after the appreciation in Indian rupee, they were receiving a lot of inquires from the US and European textile buyers, but now after the package is announced, it is expected that these orders will once again go back to India.
Keeping in view the situation, they stressed upon the Pakistan government to announce some relief package for exports, especially for textile sector, which was the backbone of the country's industry as well as exports.
Source:Industry Website
