No economic stability without focus on exports sector

LAHORE: The Pakistan Tanners Association (PTA) has said that no economic stabili
ty is foreseeable if it is without the consideration of the country s exports sect
or.
After an emergent meeting of the leather sector, the PTA called upon to consider
the worst-ever decline in exports recorded in the last 25 years.
"Leather had never faced such a steep fall in exports in the history." The PTA u
rged Prime Minister Nawaz Sharif as leader of the business community for attendi
ng SOS message from leather exporters and come for the rescue.
The Ministry of Finance and Economic Affairs is on the move for finalising propo
sals for the upcoming federal budget and it should consider the PTA proposals to
arrest decline in leather exports, which is 27 percent down already in terms of
value of goods exported in July-March last year, the PTA chairman said.
Agha Saiddain, former chairman of the PTA, said that during the last three years
, Pakistan lost 42 percent in terms of quantity of leather exported.
"Pakistani leather is considered as the world s best leather even better than Indi
a, Bangladesh and other countries and we have the best leather technology availa
ble in the country."
Saiddain stressed on the government to take measures to provide level-playing fi
eld for leather manufacturers-cum-exporters.
He said that a recent delegation from Pakistan comprising, inter-alia, the high
ranked officers from the Ministry of Commerce, during its tour to India in Decem
ber 2015 witnessed the flourishing of the Indian leather sector with the patrona
ge of the government of India.
Anjum Zafar, chairman of Duty Drawback Committee of the PTA, said that Pakistani
leather exporters are facing problems due to nonpayment of refunds (sales tax,
duty drawback) for the last two years.
"No benefits, but we want our money refunded. Presently, Punjab leather industry
has more than Rs250 million stuck up on account of sales tax and duty drawback
refunds."
He said that the government of Pakistan, at large, has failed to account for the
genuine needs of the leather exporting sector; therefore, Pakistani leather exp
orters stand nowhere in the global outset.
"After 2010 till 2015, our regional competitors such as Bangladesh outperformed
in the same regime and its leather exports boosted 105 percent, whereas India an
d China posted a parallel increase of 63 percent and 19 percent in the same peri
od.
Pakistani exports are on the decline for which Zafar held the government policie
s responsible.
Besides inflation, local taxes are adding up 12 to 14 percent to the cost of exp
orts; hence, "we are getting out of business internationally .
Evidently, there is no consideration for exporters at the Federal Board of Reven
ue (FBR) offices.
The government should bring comprehensive reforms in the tax refund system so th

at no refunds of exporters should remain stuck up anymore, Anjum said.

The PTA (Northern Zone) chairman appealed to the prime minister to call an emerg
ent meeting with the leather sector stakeholders in order to build up a deep ins
ight on the worsening affairs and to take measures for improvement.
He said that a comprehensive letter was already awaiting prime minister's consen
t and consideration.