Business

More industries to halt operations, warns value-added textile sector

Published

2 years ago

Farwa

Value-added textile sector warns of job losses.
Says exports have declined sharply.
Around 7 million workers likely to lose jobs.

KARACHI: Lamenting the current economic crisis, Pakistan’s value-added textile sector feared that more industries would halt their operations, which would increase the number of layoffs, The News reported Tuesday.

Associations representing the value-added textile sector, while speaking during a joint presser, said that other exports have declined sharply along with textiles. They said that it is likely to further decline to the lowest ebb amid dangerously low foreign exchange reserves.

Participants included Value-Added Textile Forum Coordinator and Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani, Pakistan Hosiery Manufacturers and Exporters Association Chairman Muhammad Babar Khan, PHMA Zonal Chairman Khizer Mehboob, Pakistan Knitwear and Sweater Exporters Association Chairman Rafiq Godil, Pakistan Cloth Merchants Association former chairman Abdul Samad, and chairman of the Towel Manufacturers Association of Pakistan.

They pointed out that industries were compelled to shut down and lay off around 7 million workers, of which 4 million were the textile sector’s workforce.

Raising the matter of letters of credit, the industry representatives said that import of necessary raw materials and accessories with even nominal values such as $5,000 were denied, which dented export orders. This caused severe disruption and delays in completion and even cancellation of export orders.

This situation also led to port demurrage of various consignments, which exceeded the cost of those materials that were damaged and would now be auctioned as they were of no use to export industries.

Recently, textile exporters were also deprived of their remittances to participate in a global textile exhibition scheduled in Germany and barred from sending exhibition materials via an international courier. Participation only became possible after the intervention of the Trade Development Authority of Pakistan, which sought special permission from the State Bank of Pakistan for the purpose.

The value-added sector demanded the government to give it first priority instead of third in imports of raw materials compared to the imports of even essentials like wheat and edible oil and energy.

Decrying the delay in the release of sales tax refunds, they asked the government to disburse the amount in 72 hours after approval of eRPOs instead of delaying it for two months.

Industrialists have lost faith in the government because of its failure to strengthen the economy. It was impossible to operate under extreme financial stress and an economic crisis. All priority should be given to the value-added textile exporters, the presser participants demanded. The government should allow exporters to spend 20% of their foreign remittances on the import of raw material and accessories.

SBP has already allowed exporters to retain 10% of their export proceeds in Exporters Special Foreign Currency Account to spend these US dollars on various purpose e.g. foreign consultant payment, hotel booking and travelling, payment for IT equipment and software, lab testing charges, audit/ inspection/ certification charges etc.

Talking about the gas crisis, the industrialists said that amid the gas crisis in the country, particularly in Karachi, they felt deprived of a level playing field and a viable business environment.

Business

An investigation was “launched” into PTA’s inability to get Rs. 78 billion back from Telcos

Published

18 hours ago

Farwa

The PTA has reportedly been instructed to reply to NAB by July 29. According to the enquiry, the national exchequer has suffered losses as a result of the delay in collecting dues.

The PTA has been asked to provide NAB with information about any pertinent records, court proceedings, and overdue bills. The NAB Karachi has summoned the PTA officials to appear with all pertinent documentation.

All of the principle sum has to be paid by the LDI firms, according to sources. But due to judicial stay orders, the collection of dues has been impeded.

These sources further state that a steering group has been established by the Ministry of IT to supervise the issue of dues recovery.

In a previous event, the tariffs levied on importing cell phones from outside were clarified by the Pakistan Telecommunication Authority (PTA).

Contrary to what some internet reports claim, PTA clarified in response to recent news regarding the tariffs on mobile phone imports that there hasn’t been a formal decision to remove these levies in Pakistan.

the PTA.Pakistanis living abroad will be the only ones free from these levies, according to the PTA. A SIM card can be inserted and the phone restarted to temporarily register a device for non-PTA mobile subscribers.

Business

Weekly inflation in Pakistan increased by 0.17 percent.

Published

18 hours ago

Farwa

The SPI for the week under review in the aforementioned group was reported at 321.95 points, as opposed to 321.40 points during the previous week, according to the PBS statistics.

The SPI for the combined consumption group saw a 20.09 percent increase in the week under review compared to the same week the previous year.

The weekly SPI includes 51 necessary items for every spending group and 17 urban areas, with a base year of 2015–16 = 100.

The SPI for the lowest consumption category, which is up to Rs 17,732, grew by 0.08 percent from 311.97 points to 312.22 points this past week.

0.18 percent,The index of consumption for the lowest consumption groups, which are Rs 17,732-22,888, Rs 22,889-29,517, Rs 29,518-44,175 and above Rs 44,175; increased by 0.13 percent, 0.15 percent, 0.18 and 0.19 percent, respectively.

Nineteen (37.25%) of the fifty-one commodities had price increases over the week, eight (15.69%) had price decreases, and twenty-four (47.06%) had unchanged pricing.

On a weekly basis, the following commodities saw significant price decreases: tomatoes (9.19%), onions (2.14%), LPG (1.04%), bananas (0.53%), wheat flour (0.35%), potatoes (0.17%), pulse masoor (0.16%), and bread (0.05%).

Chicken (4.80%), garlic (2.01%), pulse gramme (1.87%), eggs (1.71%), beef (0.93%), gur (0.89%), pulse moong (0.84%), fresh milk (0.45%), firewood (0.23%), and cigarettes (0.12%) were among the items whose average prices increased significantly week over week.

The commodities that saw a year-over-year decline were: wheat flour (31.75%); cooking oil (13.44%); vegetable ghee 2.5 kg (10.42%); vegetable ghee 1 kg (9.85%); mustard oil (8.33%); eggs (5.82%); rice basmati broken (4.15%); and tea package (2.52%).

Gas prices for Q1 (570.00%), onions (96.01%), pulse gramme (40.39%), powered milk (39.11%), garlic (34.61%), pulse moong (29.77%), men’s sandals (25.01%), beef (23.52%), salt powder (23.28%), pulse mash (22.50%), and energy saver (17.96%) were among the commodities whose average prices increased year over year.

Business

The price of gold has drastically dropped in Pakistan.

Published

2 days ago

Farwa

As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the cost of 24-karat gold per tola decreased by Rs 2,300, standing at Rs 250,500.

A kilogramme of 24-karat gold costing Rs1,972 less at the local market, making it worth Rs2114,763. Ten grammes of 22-karat gold had a price decrease to Rs196,866 as well.

After losing a significant $43 during the day, the rate per ounce of gold on the international market also decreased. It currently stands at $2,370.

On Thursday, the price of 24-karat silver also experienced a decline, falling by Rs60 to settle at Rs2,860 petal.