Indian textile exporters have entered Pakistani market through Afghan Transit Trade (ATT). Sources said at present several markets in Karachi, Lahore and Peshawar are flooded with highly competitive Indian polyester. However, it is not being imported through legal channels and goods imported for ATT are being sold in local market.
After released from Pakistani ports, ATT goods are not transited to Afghanistan and major imported containers are emptied in different local markets especially Lahore and Peshawar," sources added.
Export substitute industry is being affected badly with high import of polyester from India through ATT, while export-oriented textile industry is also suffering millions of rupees losses, industry sources said.
They said that Indian textile traders and exporters are also regularly visiting Pakistani markets and getting millions of rupees orders, as they have more advantages on the export of textile products as compared to Pakistan. Industry sources said the Indian government has announced massive incentives package for textile exporters in contravention of WTO rules.
Taking advantage of their investment's steps, the textile exporters have entered Pakistani market, which is also a big exporter of textile products. "Indian government has announced an 8 percent rebate on the export of textile, which works out to Rs 15-20 per meter," they added.
Pakistan is already facing difficulties in increasing exports and at the same time import of Indian polyester through ATT would further jolt the export oriented textile industry, they said. "We have proof that Indian textile exporters have entered Pakistan and they are trying to capture polyester market through Afghan Transit Trade," said a leading textile tycoon on condition of anonymity. ATT goods required some 10-12 days for transit trade from Pakistan to Afghanistan, while the record shows that empty containers and trucks return in a few days, he added.
"We have approached federal government on the issue, however no positive action has been taken by the authorities in this," he said. Recently, after a detailed presentation, Prime Minister's advisor on economic affairs Shaukat Tarin also promised for a prominent action, but still there is no development on this sensitive issue, he added. He urged the government to take immediate action and regularise the ATT to save local polyester and textile industry.
