Reviewing the export performance of 'Textile Sector' during the ending year, Chairman Pakistan Textile Exporters Association, Shaiq Jawed, mentioned that during fiscal year 2016-17, textile exports witnessed continuous negative growth; however, from beginning of current year, textile exports have taken an upsurge.
Giving details, he said that after touching the highest figures of USD 13.73 billion in 2013-14, textile exports dropped to USD 13.47 billion in 2014-15, USD 12.44 billion in 2015-16 and then taking a slight rise of 0.04% reached to USD 12.45 billion in 2016-17. As a result of Government's progressive move of cash incentives under the Prime Minister's trade package, textile exports have taken the flight; however there are still challenges need to be addressed to further accelerate the growth, he added. Considering lack of competitiveness both at internal and international fronts as the major irritant in export growth, he said that high cost of energy inputs is a serious concern for the textile sector as textile industry is heavily rely upon energy consumption. Industrial gas tariff of Pakistan is almost 100% higher and electricity tariff is almost 50% higher as compared to other regional competitors; whereas Punjab based industries are compelled to use high-priced RLNG in winters. With energy as a major cost of production, the sector is losing its competitiveness by consuming expensive energy, he said. Stuck up liquidity in refund regime is another stumbling block as exporters' billion of rupees are stuck up in sales tax, income tax and custom rebate creating severe liquidity crunch for exporters. If these amounts are released, exporters can use such amounts in further expansion of trade. Technological improvement is also an aspect where Pakistan lags behind. Not enough investment has been made in technology because of which the productive capacity of the sector remains stagnant. In 2006, Pakistan made USD 1 billion investment per annum whereas in 2016-17 this investment reduced to USD 0.56 billion, he said.
PTEA Vice Chairman Ammar Saeed was of the view that textile industry, for years, has been the country's backbone as this sector absorbs 40% of the total industrial workforce and contributes 62% towards exports. Despite being the fourth-largest producer of cotton, Pakistan is not even in the list of top 10 exporters. Describing low growth in exports, he said that diversifying the export market is a major irritant in the enhancement of export proceeds.
Copyright Business Recorder, 2017