Experts Criticize Pakistan Textile Exporters For Making It Cheaper For Foreign Buyers.

Pakistan economists advise the government, before formulating the next budgetary measures, we need to know which factors of competitive economy increase the cost of their own trade and industry.

They say Pakistan exporters like to pfer their advantages to foreign buyers.

This keeps them vigilant, but not long after they start asking the government for more benefits.

For example, the spinning enterprises have recently depreciated their rupees, and they have reduced the export prices of yarns.

However, exports have not expanded correspondingly, and they are making profits when there is no need to cut prices, because they have gained more advantages than India according to the exchange rate of Pakistan.

Economists say Pakistan has the best sewing and knitting machines among its South Asian competitors.

However, compared with the export prices of India, China and Bangladesh, the prices of these machines are the lowest.

They say that when entrepreneurs sell products at the lowest price in the world, there is no logic to continue to make the price.

They pferred the government's 4 to 6 percent R & D subsidies to foreign importers.

Experts pointed out that the difficulty of the textile industry lies in not developing the domestic market.

Shirts, trousers and children's clothing from Thailand, Indonesia and Vietnam recently have flooded the domestic market.

The question is, why is Pakistan's textile industry blind to the impact of foreign textile products on its domestic market?

It also raises the question of whether the policy makers in the government have the ability to do so and why they do not stop these imports from legitimate and illegal channels.

India levying low tariffs on fabrics and clothing imports, and at the same time set a minimum amount, whichever is higher.

The lowest tax rates for low cost countries are very high while high-end products are released at low tariffs.

Economists assert that electricity prices, natural gas prices, wages and inflation are high, and these factors have affected all regional competitive economies, including China, India, Bangladesh and Sri Lanka.

The interest rate in Pakistan is very high and must be lowered.

A study shows that inflation in India in 2004 was 4.5%, and now it is increased to 8%.

Pakistan's inflation in 2004 was almost the same as that in India, now rising to 10.3%.

Inflation in Bangladesh and Sri Lanka exceeds Pakistan, and inflation in China is in the same level as India.

Inflation in Pakistan is 2.3% higher than that in India and China.

Electricity costs in India, China and Bangladesh are slightly higher than those in Pakistan.

In 2004, the cost of electricity in these countries was relatively low, but gradually increased since the cost of electricity generation increased.

Speaking of natural gas costs, Pakistan industries enjoy a tariff advantage over India and Chinese enterprises, but Bangladesh has lower prices.

Pakistan's refined oil products are cheaper than India, although India's prices fell slightly last month.

One liter of gasoline in India is 1.10 dollars, while Pakistan is 1.01 dollars.

In 2004, the Pakistan rupee was 57.60 against the US dollar and now depreciated by 16.5% to 67.85.

In 2004, the India rupee was 47.25 against the US dollar, now rising to 42.85, an increase of slightly over 10%.

Therefore, in the past four years, Pakistan exporters have a 26% advantage over India exporters in terms of exchange rate.

The Bank of Pakistan has increased the discount rate from 10.5% to 12%, which is unfair. Raising the balance of the cash reserve may reduce the cash flow. Now India's central bank is doing the same.

Letter of credit cash margin cut 35%, imports may be reduced, the problem is not raising interest rates, as a result of this measure, rupee rebounded, India's repurchase rate (repo) maintained at 8%.