Business Hub – Cairo:
He appealed to the industrial sector of the “export” ready-made garments and the exporting textile and furnishings sector, His Excellency President Abdel Fattah Al-Sisi, the President of the Republic to intervene to pay the factories’ dues from the export support for the fiscal year 2022/2021. To resolve the crisis facing the factories, pay the arrears due in the export support program and refund the value added tax, In order to solve the crisis of lack of financial liquidity in factories, Especially with the increase in raw materials prices by 30% and the consequent increase in production costs as well as the increase in industrial fees and costs.
The statement stressed that the export support programs enabled the ready-made garment sector to increase exports by 49% in the past year 2021 and achieve a 42% increase in the first 6 months of 2022, as the support program is an important way for factories to achieve price competition
pleaded, A joint statement by the Garment Export Council and the Spinning, Textile and Furnishing Export Council, Your Excellency, intervene with government agencies to expedite the disbursement of the dues of export support, And directing the responsible bodies and authorities in the Ministry of Finance and Trade to expedite the disbursement of arrears to support the export sectors and provide them with liquidity under the current circumstances.
The statement confirmed The rise in all import and export duties contributed significantly to the increase in production costs and consequently the increase in the selling price of Egyptian exported products, which leads to a decline in the competitiveness of national exports, This represents a major obstacle to achieving the state’s targets to reach $100 billion in exports.
The joint statement noted, that these obstacles may result in reducing the production capacity of factories, and failure to fulfill its obligations towards employment, which may prompt the abandonment of part of the employment, The inability to secure the production inputs necessary for the industry
The joint statement said, The garment, spinning and weaving industry is a strategic industry that provides thousands of job opportunities and achieves an export proceeds of 3.6 billion dollars during 2021, with 2.049 billion dollars for clothing and 1.567 billion dollars for spinning and furnishings. And that this industry has faced great challenges internally and externally since 2020 after the global trade movement was affected by the Corona virus pandemic, which inflicted losses on factories whose effects extended to 2021, Then the sector entered into the problem of stopping the shipping lines, the instability of the shipping lines, and the rise in sea freight rates by more than 120%, Then the sector was exposed to a bigger crisis with the Russian-Ukrainian war, which resulted in inflation rates in the main markets of the ready-made garments, spinning and furnishings sector, especially the European Union and the United States of America.
The statement stressed that there is a tremendous development in the spinning and weaving factories in the public business sector, which is reflected positively on the performance of the private sector, especially the export sector.