The President of Pakistan Textile Mills Association (Aptma) said that at present, Pakistan’s textile tax rebate has been halved, making business operation more difficult for textile mills.
At present, the competition in the textile industry in the international market is fierce. Although the rupee devalues or stimulates domestic exports, under the condition of normal tax rebate of 4-7%, the profit level of textile factories is only 5%. If the tax rebate continues to be reduced, many textile enterprises will face the risk of bankruptcy.
The head of the Kuwait Investment Company in Pakistan said that Pakistan’s textile exports in July fell 16.1% year on year to US $1.002 billion, compared with US $1.194 billion in June. The continuous increase of textile production costs diluted the positive impact of the devaluation of the rupee on the textile industry.
According to statistics, the Pakistan Rupee has depreciated by 18% in the past nine months, and the textile export has declined by 0.5%.
Post time: Oct-18-2022