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KARACHI: Walmart, one of the worlds biggest retail chains, has rejected the offer of Pakistani readymade garments manufacturers to meet fresh orders due to the law and order situation and other economic problems in the country, said Bilal Mulla, leading ready-made garments manufacturer in Pakistan. He was speaking at a meeting of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday about the difficulties faced by export-oriented sectors.
Earlier this week, Walmart banned 250 Bangladeshi garment factories from producing for it. Taking advantage of the opportunity, we contacted Walmart to divert the orders to Pakistani producers, said Mulla, who is also Chairman of FPCCI Standing Committee on Export Trade. But the retail chain refused, citing security issues and the energy crisis in Pakistan, he added.
On the request of exporters, the FPCCI, which is the apex trade body of the country, arranged the meeting. Only four exporters representing three sectors attended the meeting.
Exporters unanimously agreed that exports had suffered due to the energy crisis and security conditions in the country. FPCCI office bearers believe it would be difficult to achieve this years export target of $29 billion as only two-thirds or exports worth $19 billion were realised during the first 10 months of the current fiscal year.
Waheed Ahmed, chairman, All Pakistan Fruit and Vegetable Exporters and Merchant Association, said that there was confusion regarding Iranian trade because banks were refusing to issue Form E while State Bank of Pakistan (SBP) denied that there were any such restrictions.
Danish Khan, representing leather garments, discussed problems in exporting jackets using animal fur, saying that bureaucratic hurdles cause foreign exchange losses.
Gulzar Feroz, vice president, FPCCI, demanded that the government should eliminate two percent withholding tax on exports. He also proposed that commercial councilors linkages should be established with local business entrepreneurs at the FPCCI level. Mehar Alam, General Secretary, FPCCI, added that commercial councilors should have a training session at FPCCI to understand the trading dynamics.
Shaheen Ilyas Sarwana, vice president, FPCCI, presented recommendations of the apex trade body related to exports. He said that the government should allow export refinance facility (ERF) to the extent of collateral value.
Sarwana further said that ERF is being provided by financial institutions based on available collateral. Given the economic downturn, substantial margins are now being withheld on the value of collateral. As a result, the financing limit is well below the collateral value, he added.
The interest rate of export refinance at 8.4 percent is still the highest in the region, said Sarwana and urged the SBP to lower the rate. It should be allowed at zero percent to export oriented industries, he said.
Pakistan export finance guarantee facility is limited to the US and EU countries, he said. Such schemes should be flexible and extended to other countries, especially non-traditional markets, Sarwana said.
The SBP is currently allowing 90 days deferred payment for export contracts proceeds. This should be enhanced to 180 days, as the current limit is too short and causes problems for exporters, the FPCCI suggested.
Moreover, Feroz said that direct and indirect taxes on exports are almost 40 percent. He said the government should also allow 100 percent exemption on exports or compensate through other measures.
He discussed the issues of stuck up refunds of exporters with the FBR and urged the revenue body to issue refunds on priority basis.
Walmart refuses to place fresh orders with Pakistan - thenews.com.pk
Earlier this week, Walmart banned 250 Bangladeshi garment factories from producing for it. Taking advantage of the opportunity, we contacted Walmart to divert the orders to Pakistani producers, said Mulla, who is also Chairman of FPCCI Standing Committee on Export Trade. But the retail chain refused, citing security issues and the energy crisis in Pakistan, he added.
On the request of exporters, the FPCCI, which is the apex trade body of the country, arranged the meeting. Only four exporters representing three sectors attended the meeting.
Exporters unanimously agreed that exports had suffered due to the energy crisis and security conditions in the country. FPCCI office bearers believe it would be difficult to achieve this years export target of $29 billion as only two-thirds or exports worth $19 billion were realised during the first 10 months of the current fiscal year.
Waheed Ahmed, chairman, All Pakistan Fruit and Vegetable Exporters and Merchant Association, said that there was confusion regarding Iranian trade because banks were refusing to issue Form E while State Bank of Pakistan (SBP) denied that there were any such restrictions.
Danish Khan, representing leather garments, discussed problems in exporting jackets using animal fur, saying that bureaucratic hurdles cause foreign exchange losses.
Gulzar Feroz, vice president, FPCCI, demanded that the government should eliminate two percent withholding tax on exports. He also proposed that commercial councilors linkages should be established with local business entrepreneurs at the FPCCI level. Mehar Alam, General Secretary, FPCCI, added that commercial councilors should have a training session at FPCCI to understand the trading dynamics.
Shaheen Ilyas Sarwana, vice president, FPCCI, presented recommendations of the apex trade body related to exports. He said that the government should allow export refinance facility (ERF) to the extent of collateral value.
Sarwana further said that ERF is being provided by financial institutions based on available collateral. Given the economic downturn, substantial margins are now being withheld on the value of collateral. As a result, the financing limit is well below the collateral value, he added.
The interest rate of export refinance at 8.4 percent is still the highest in the region, said Sarwana and urged the SBP to lower the rate. It should be allowed at zero percent to export oriented industries, he said.
Pakistan export finance guarantee facility is limited to the US and EU countries, he said. Such schemes should be flexible and extended to other countries, especially non-traditional markets, Sarwana said.
The SBP is currently allowing 90 days deferred payment for export contracts proceeds. This should be enhanced to 180 days, as the current limit is too short and causes problems for exporters, the FPCCI suggested.
Moreover, Feroz said that direct and indirect taxes on exports are almost 40 percent. He said the government should also allow 100 percent exemption on exports or compensate through other measures.
He discussed the issues of stuck up refunds of exporters with the FBR and urged the revenue body to issue refunds on priority basis.
Walmart refuses to place fresh orders with Pakistan - thenews.com.pk
