China'S Textile Export Tax Rebate: Making Pakistan Face Severe Competition

According to the Daily Times reported in August 5th, the Pakistan knitwear manufacturers association said recently that China has recently raised the export tax rebate rate of some textiles and clothing from 11% to 13%, so that the export of textiles with high value-added clothing such as Pakistan is facing more severe competition and the prospect is even more bleak.

Bilwani, chairman of the Pakistan knitwear manufacturers association, said the production costs of the textile and garment industry in Pakistan have risen sharply due to rising energy and raw material prices, high loan interest rates and backward infrastructure, and are facing fierce competition from China, India and Bangladesh.

This time, China will increase the export rebate rate of textile products, which will make Pakistan's textile and garment exports in a more unfavorable position.

Because of the difficult situation, many textile enterprises have to stop production or go bankrupt, and many enterprises are considering pferring to neighboring countries.

The Association asked the government to focus on the difficulties and situations of the textile and garment industry, and to implement the recently announced relief measures as soon as possible, so as to enhance the competitiveness of domestic enterprises.