It appears that the Governor of State Bank, Dr Shamshad Akhter, has no other work to do except vilifying the textile sector which she thinks was responsible for negative economic growth. She claims that Rs 40.0 billion R&D support was provided to textile industry but the performance of this sector was deplorable.
With due respect, we would ask her, if she has compared the increase in energy charges, prices of raw material like yarn, chemicals, packing material, salaries of labour, loss of working hours due to breakdown in electricity, loadshedding, shortage of water, loss of production and damage to machinery due to bad law and order situation, bank interest rates, State Bank refinance rates, delay in refund of sales tax, slow processing of R&D claims by State Bank and Customs etc, etc, she would find that the support of Rs 40.0 billion was just peanuts.
The fact of the matter is that the textile industry did not receive any attention at the time when it was initially needed. When the textile ministry was formed, the Commerce Ministry turned against rather inimical to textiles.
The former prime minister Shaukat Aziz showed sympathy to textile for 8 months but when the time of decision came, he gave a lollypop and promised reforms but always postponed for the next month. The Commerce Minister and State Bank started a vicious propaganda in electronic and print media that the textile products of Pakistan were of poor and low grades.
This gave signals to the international market about the bad quality of our textiles making our sales more difficult because the buyers hesitated to buy our products saying, "how can we purchase your products when your government has itself certified about the low quality of your goods?"
The State Bank who played a bad role in exports and economy of the country is now blaming the previous government for all malaise. It blames the industry for misuse of R&D support.
The textile sector is not particularly interested in receiving R&D support. We only want that we should have a level-play field with our competitors. It was claimed that the Governor had exemplary ability in economic and finance field. But having failed, now she blames other sectors for their bad performance.
Why did she agree to write off Rs 59.0 billion loans of undeserving persons? We would advise her not to blame textiles and other sectors but put her own house in order. It would bring good results if she consults the Textile Minister who has a long experience of commerce, especially the textile sector. When the country's economy is in a lurch, it is all the more necessary that the government and industrialists cooperate with each other instead of confrontation.
(The writer is Patron-in-Chief and ex-Chairman TMA)
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