Hosiery and knitwear exporters are unable to compete in the global market due to higher utility costs, delays in refunds of sales tax, reduction in duty drawback rates and increased rates of export refinance, according to a letter sent to Planning Commission Deputy Chairman by the Pakistan Hosiery Manufacturers Association (PHMA) Jawed Bilwani. The sector has been facing stiff competition in recent times from India, Bangladesh, China and emerging competitors like Vietnam, Cambodia, Jordan and exporters also complain of their being an unequal playing field in the global market.

He said power and gas tariffs besides the tax structure were making the cost of production much higher than in neighboring countries such as India, Bangladesh, China, Sri Lanka and Nepal.

PHMA was one of the leading organizations with exports of over $1.6 billion that represented a large number of knitwear and hosiery manufacturers. Exporters who were fighting for survival had to meet and comply with buyers demands, plan export strategies and production schedules and also keep abreast with the latest fashion trends. He added that they found it difficult to compete due to the rising costs of production and blocked sales tax refunds which were needed to run factories.

The PHMA Chairman said a large number of knitwear units were seriously considering shifting and relocating their manufacturing concerns to neighboring countries due to the sky rocketing cost of utilities.

Javed Bilwani said their units were equipped with the latest machines and equipment but in spite of the high quality of products they were still unable to compete with neighboring countries because of what he called the lack of interest on the part of our Government.