Latest news with #PHMA
Express Tribune
3 days ago
- Business
- Express Tribune
PHMA urges PM to reverse SRO 1359
Listen to article The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has strongly opposed the recently issued SRO 1359(I)/2025, warning it could cripple the country's largest foreign exchange-earning sector — value-added textiles. According to a statement released on Tuesday, PHMA North Zone Chairman Abdul Hameed wrote a letter addressed to Prime Minister Shehbaz Sharif, demanding an immediate withdrawal of the notification. Issued on July 29, the SRO imposes restrictions on importing cotton and blended yarns, especially in counts between 10 and 40, and reduces the material utilisation period under the Export Facilitation Scheme (EFS) from 24 to 9 months. Exporters say the changes will block billions in sales tax refunds.
Business Recorder
4 days ago
- Business
- Business Recorder
PHMA calls for withdrawal of SRO 1359(I)/2025
LAHORE: The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has issued a strong protest against the recently issued SRO 1359(I)/2025, warning that it poses a serious threat to the country's largest foreign exchange earning sector — value-added textiles. In a letter addressed to Prime Minister Shehbaz Sharif, PHMA North Zone Chairman Abdul Hameed has called for immediate withdrawal of the SRO and urgent government intervention. The notification, issued on July 29, 2025, makes key changes to the Export Facilitation Scheme (EFS), placing restrictions on the import of cotton and blended yarns — especially yarn counts between 10 and 40, which are essential for manufacturing export-quality garments. The SRO also reduces the allowable time for material utilization from 24 months to only 9 months. Exporters say the changes will block billions of rupees in sales tax refunds and worsen an already tight liquidity situation. 'This is an SOS appeal. We are not asking for subsidies or favours. We are simply demanding the continuation of policies that were already agreed upon after long consultations,' said Abdul Hameed. 'The spinners' lobby is being protected at the expense of national exports. That is unacceptable.' He added that value-added textile exports have already crossed $9 billion in the last fiscal year and remain the backbone of Pakistan's economy. 'Any disruption to this industry will have a direct impact on jobs, exports, and foreign exchange inflows,' he warned. The PHMA said that repeated meetings with government officials, advisors, and economic experts had resulted in an agreement that the import of cotton and blended yarns in the 10–40 count range would remain allowed under EFS. It was also promised that the period of consumption would be extended to 24 months, considering the long lead times involved in international orders. However, the latest SRO contradicts both points. Abdul Hameed stated that exporters now fear serious delays in fulfilling orders, which could result in penalties from international buyers and possible cancellation of contracts. 'We are running production cycles planned months in advance. Sudden policy shifts throw the entire system off balance,' he said. He also demanded that the current system of insurance guarantees under EFS be replaced with bank guarantees, which are standard practice globally and more reliable for exporters. Copyright Business Recorder, 2025
Business Recorder
7 days ago
- Business
- Business Recorder
Customs Rules: PHMA expresses concern over draft amendments
KARACHI: Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has taken strong notice to the FBR's notification issued vide SRO 1359(I)/2025 dated 29th July 2025 proposing draft amendments in Customs Rules 2001 to introduce draft amendments in Rule 871, 872, 876, 877, 879, 880, 882, 883 & 885 which will defeat the objective and purpose of Export Facilitation Scheme to provide a level-playing field, competitive and enabling environment to exporters to ease down their liquidity pressure and facilitate their cash-flow so that they may get new orders to enhance their exports. In a letter to Shah Faisal Secretary (Export Policy) Federal Board Revenue (FBR), Jawed Bilwani Patron in chief PHMA, Central Chairman Muhammed Babar Khan and Chairman South Zone Faisal Arshad Shaikh said that the proposed amendments tantamount to imposition of taxes and levies mainly on import of cotton yarn and grey cloth on import-stage by excluding the same from the scope of Export Facilitation Scheme. Approval and implementation of said draft amendments will shatter the hard enterprise of exporters to enhance exports, shall lead to decline in export and foreign exchange earnings due to liquidity crunch and in-competitiveness. Continuation and implementation of Export Facilitation Scheme (EFS) in its Original status and position prior to Federal Budget 2024-2025 is inevitable and lifeline to enhance national exports and the proposal of imposing taxes and duties at the import-stage for importation of materials to manufacture goods meant for exports will sabotage apparel and textile exports. In view of this PHMA conveys strong objection on subject draft amendments which are harsh and anti-export and not acceptable in order to safeguard the value-added apparel & textile exports. Any decision taken by the FBR/ Government arbitrarily and without consultation of Value-Added Apparel and Textile Exporters Association will lead to serious repercussions and will cause decline in national exports and foreign exchange earnings. PHMA further requested to immediately call broad-based meeting of all Value-Added Apparel & Textile Exporters Associations in this regard. They noted that PHMA was established in 1960, holds the distinction as premier and largest Trade Organisation representing more than 1200 exporters of Value-Added Apparel - Hosiery / Knitwear products having Association's offices in Karachi, Faisalabad, Lahore and Sialkot. The Hosiery/ Knitwear Sector alone earns approx. USD 5 billion annually for the country which includes knitted products of T-Shirts, Trousers, Hoodies, Socks, Bed-sheets, Dyed Fabric etc. and provides huge urban employment. The Hosiery/ Knitwear exports rank among top-export in the total textile as well as national exports. Copyright Business Recorder, 2025
Express Tribune
01-08-2025
- Business
- Express Tribune
'SBP policy decision a blow to recovery'
Listen to article The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has criticised the decision of the State Bank of Pakistan (SBP) to maintain its key policy rate at 11%, calling it a major blow to industrial recovery, export growth and job creation efforts. In a statement on Thursday, PHMA Zonal Chairman Abdul Hameed said that value-added textile export sectors were expecting a long-awaited reduction in interest rate to single digits in light of falling inflation and improved economic indicators, but the SBP's decision deeply disappointed the industry, which was already reeling from high production costs and declining global competitiveness. Abdul Hameed pointed out that continuation of such a high policy rate had no justification when headline inflation had dropped to around 4% and core inflation was showing clear signs of moderation. "Based on the current inflation rate, the policy rate should not be more than 6% and keeping at nearly double that level is stifling industrial potential." He said that the central bank's refusal to bring down interest rate despite macroeconomic stability and declining price pressures was blocking the path to growth as borrowing costs were simply unaffordable for small and medium-sized exporters. High interest rates are choking liquidity, preventing capital investment, discouraging new orders and making Pakistani products more expensive in international markets. Citing an example, Abdul Hameed said that neighbouring countries had already adopted a more pro-growth monetary stance as policy rates in India, Bangladesh, China and Thailand stood well below that in Pakistan.
Express Tribune
31-07-2025
- Business
- Express Tribune
Industry dismayed by policy rate status quo
Listen to article The trade and industrial community has strongly reacted to the State Bank of Pakistan's (SBP) decision to leave its policy rate unchanged at 11%, which came in contrary to widespread expectations of a 50-basis-point reduction and calls for a massive cut to around 6%. In the run-up to monetary policy announcement on Wednesday, trade bodies had been releasing statements, calling on the central bank to make a drastic reduction in borrowing cost, which would trigger growth of industries and the overall economy and give a boost to exports and employment. In a statement, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh remarked that the business, industrial and trade community was disappointed with the monetary policy as it continued to be based on a heavy premium vis-a-vis the Consumer Price Index (CPI). He highlighted that the CPI stood at 3.2% in June 2025 but the policy rate remained pegged at 11%, which reflects a premium of 780 basis points as compared to inflation and makes no economic sense. He pointed out that, after deliberations with different industries and sectors, the FPCCI had demanded a single-stroke rate cut of 500 basis points during Wednesday's monetary policy committee meeting. While expressing dismay over the central bank's decision to keep the policy rate unchanged at 11%, the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) highlighted the unfavourable business climate, including high interest rates, ruthless taxation and a high cost of production and utilities. PHMA Central Chairman Muhammad Babar Khan argued that the policy rate status quo would hurt the growth of exporters and manufacturers in varying sectors. "Pakistan's policy rate is higher compared to the region, which makes it extremely challenging for exporters to compete with countries such as Vietnam, Bangladesh and India," he said. Meanwhile, Karachi Chamber of Commerce and Industry President Muhammad Jawed Bilwani, in a statement, said that at a time when Pakistan's core inflation had significantly receded, there was no sound economic justification for keeping borrowing cost prohibitively high. "The State Bank has cited the uptick in inflation during May and June, along with concerns over a moderate rise in the coming months due to persistent pressure on energy prices, as reasons for maintaining the policy rate. Yet, this rationale is neither convincing nor economically sound," he added. Bilwani saw sufficient room to reduce the interest rate to single digits as many regional economies had done in similar or even more complex economic environment. "By missing this critical opportunity to lower the rate, the State Bank has dampened hopes for economic revival," he said.
