Almost all the associations, which are involved in exports of textile and its made-ups, are perplexed over the situation and believe that the Indian "export package" would help Indian exports to get a boost, besides giving a tough time to Pakistani exporters on the international front. They said that the new Indian export package would enable the foreign buyers to opt for Indian commodity on lower prices.
"Although the country's trade policy is expected to be announced during the next few days, the Federal government has already informed the exporters that it would not give any relief to them," they added. Federal Minister for Textile Mushtaq Ali Cheema, during his last visit to Karachi, also rejected the textile exporters' plea for subsidies and cash rebate by saying that this was not the era of subsidies.
Two weeks earlier, the Indian government has appreciated its currency by 10 percent and the dollar, after the depreciation, is available at 40 Indian rupees as against the Rs 44 in the last week of June. Textile industrialist said on Friday to offset the impact of the Indian rupee appreciation, the Indian government had now announced a special export package, comprising raise in duty draw back by 10 to 40 percent of existing rates.
In addition, the Indian Commerce Ministry has announced two percent reduction in interest rate on pre and post-shipment credit, besides DEPB rates have been enhanced by three percent for nine sectors, including textile, readymade garments, leather products etc.
After the 10 percent appreciation in the rupee, India's textile and other exports have become costlier, therefore, the existing Indian buyers diverted to Pakistan. "After the appreciation in the Indian rupee, we were receiving a lot of inquires from the US and European textile buyers, but now it is expected that these orders will once again go back to India, " textile exporters said.
After the Indian's export package, they stressed upon the Pakistan government to announce some relief package for exports, especially for textile sector, which was the backbone of the country's industry as well as exports. "If the government did not announce any relief package, then it is expected that our current year export target would once again be jeopardised," they added.