By Muhammad Soban

Islamabad, Aug 15, (INP-WealthPK): The restrictions imposed by the State Bank of Pakistan (SBP) on the import of machinery and equipment have been affecting the exports of hosiery, which showed rapid growth in the previous year, WealthPK reports.

The SBP has imposed restrictions to reduce the import bill and narrow down the gap between the exports and imports of the country to strengthen the national economy.

A delegation of the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has requested Finance Minister Miftah Ismail to lift the restrictions and allow the import of machinery and equipment to increase the production capacity of the sector and enhance exports.

An official statement issued by the Finance Ministry highlighted the contribution of the hosiery and knitwear industry to the economic growth of the country. The members of the delegation discussed taxation issues, refund of sales tax, and electricity and gas tariffs with the minister.

Minister Miftah Ismail said that the government is committed to helping the business community to achieve sustainable growth. He assured the members of the delegation that their concerns would be resolved on a priority basis, and urged them to improve the export base.

The delegation was led by Mian Kashif Zia, the chairman of the PHMA. A number of senior officials from the finance and commerce ministries attended the meeting including a deputy governor of SBP and a member of the Federal Board of Revenue (FBR).

The participants of the meeting told journalists that the restrictions were imposed by the SBP owing to economic uncertainty and financial hardships faced by the country.

SBP’s Foreign Exchange Operations Department (FEOD) has imposed restrictions on the import of all types of industrial machinery. Prior permission is required for the import of such machinery and other related items. The restrictions have affected the industry as it regularly imports textile machinery and equipment.

The exporters of hosiery products said that seeking prior permission for the import of machinery caused inconvenience to them and delayed fulfilment of the orders already placed with them. They said that they could not produce and export their items in a timely way owing to the restrictions.

They said that exports served as a lifeline for earning valuable foreign exchange, especially in the current scenario as Pakistan was facing unprecedented challenges and had a huge deficit of $17.4 billion. They urged the government to resolve the issues by relaxing the restrictions imposed on the import of machinery.

Credit: Independent News Pakistan-WealthPk