Talking to newsmen here on Tuesday, Chairman Pakistan Textile Exporters Association (PTEA), Mian Ajmal Farooq said that the non-serious attitude of the Government institutions is the root of the problems affecting the country's textile industry, which has an annual export turnover of US 14 billion dollars and employs millions of workers. Policymakers are not serious in resolving issues of the textile industry and the situation is worsening day by day and biggest job providing industry is heading towards disaster.
He termed PM export-led growth package a positive one but non allocation of funds for the incentives of this package has shattered all the hopes. Only Rs 1 billion are released in six month under this package out of Rs 180 billion, he added. Furthermore no effective measures are proposed in budget 2017-18 for industrial progress, increase in exports, reduction in production cost and enhancing the competitive edge of Pakistani goods in international market, he mentioned.
Vice Chairman PTEA, Muhammad Naeem was of the view that textile sector is in grip of severe crisis and the industrial production is not in accordance with the built up manufacturing capacity. Due to this underutilization, the country is not fetching the full potential of foreign exchange earnings. He termed high cost of raw materials and production inputs as major irritant in export growth. Soaring prices of supplies and ancillary goods has created a chain effect of increases and ultimately placed a burden on cost of production of industrial goods making them uncompetitive, he contended. Terming energy prices 10 percent higher than the competing countries like India and Bangladesh, he demanded the supply of gas to textile industry at the price of Rs 400/mmbtu.
Khurram Muhktar, former chairman PTEA expressing disappointment over non co-operative behaviour of the government said that textile exports contribute a major share in national exchequer and anti-export attitude is hitting hard the exports.
Copyright Business Recorder, 2017