18 percent raise in oil prices escalates textile exports cost: PTEA

The 18 percent rise in petroleum products prices in just 15 days has escalated the cost of textile exports, adding to uncompetitiveness and causing further decline in textile exports. This was stated by Tahir Ishaque Bharara, Chairman, Pakistan Textile Exporters Association (PTEA), in a meeting with a delegation of Aptma office-bearers here on Monday.
Aptma chairman Iqbal Ibrahim led a three-member delegation with Akber Sheikh, Zonal Chairman, Lahore, and Tariq Saud, Zonal Chairman, Karachi, to met PTEA members as part of consultations with various sectors of textile industry and exporters for preparing a strategy for adapting a long term textile vision.
PTEA Chairman pinpointing the common issues and problems of the textile industry and exports said the energy crisis, worsening law and order situation relief in mark-up, continuing of R&D facility and preferential treatment to textiles were the major and urgent issues needing attention of the new government.
Aptma chairman said that textile sector was presently exposed to tough competition and the biggest problem was the ever-increasing cost of doing business in the country. This, he said, was the major factor contributing to uncompetitiveness of textiles in world market. He pleaded for curbing the inputs and increase dependency on local cotton.
Regarding energy crisis he suggested privatisation of the public sector power units, and freezing of gas and electricity tariff for textile industry. He also proposed self-sufficiency in cotton crop and viable financial cost for long-term financing (LTF) and human resource development.
He opined that global textile industry was likely to grow from $300 billion to $850 billion and with USA and developed countries phasing out towards consumer markets Pak textiles stood good chance of capturing developed markets with their exports. He envisioned that Pakistan's textile exports could be increased to $40 billion with proper planning, and strategy.
The PTEA members and Aptma delegation consensus was that fertiliser subsidy was being transferred and charged to textile sector. The members also warned the govt to take cognisance of the changing trends of crop cultivation in view of new biofuel technology. The members unanimously vowed to resolve the common problems through consultation and discussions.