Textile sector on verge of collapse: two-year moratorium on principal amount demanded

Rawalpindi Chamber of Commerce and Industry (RCCI) has demanded of the Federal Government to announce at least two-year moratorium on principal amount, as well as mark up for the textile industry to save it from being completely collapsed.
Textile industry contributes nearly 11 percent of the total GDP. But the government is not ready to pay any heed to the problems of this important sector, as rise in prices of raw material has ruined this industry, former Finance Minister and ex-Chairman, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mian Habibullah Khan said here on Wednesday.
He was presiding over a meeting of the standing committee of RCCI on textile industry. The President, RCCI, Syed Asad Mashhadi, Vice President, Imtiaz Chaudhary and ex-President, Hussain Ahmed Ozgen and members of the standing committee attended the meeting. Textile sector once known as backbone of Pakistani industry and major source of foreign exchange earning is in hot waters due to imprudent policies of the government, political instability and energy crises, he said.
Mian Habibullah said that the cost of production for Pakistani industry has touched new heights due to expensive energy and increasing taxes, which has made Pakistani products least competitive in international market. He was of the view that the energy crisis has ruined the entire industrial sector, especially the textile sector.
Most of the textile industry has been closed down due to load shedding and increasing cost of electricity. He demanded that banks should not charge the mark up for the period during which, gas or electricity has not been supplied to the industry. Further, he said that past governments could not take timely decisions, while the neighbouring countries grabbed the opportunity and occupied the international textile market. The confidence of business community has been shattered due to continuous ignorance towards their distresses by the government, he added.
Mian Habibullah also said that Pakistan has highest rate of interest in the world and it should be dropped down. The governments Advisor on finance has pledged so many times that the rate of bank interests would be reduced in coming budget.
But I am afraid that how the industry will survive for only next two or three months, he asked while saying that on the other hand banks do not pay proper rate of return on investments. He said it is unfortunate that due to incredibility of present government, no one on the globe is ready to believe Pakistan. After knocking every door, rulers took loan from IMF on such hard and tough conditions that the country couldnt even initiate any mega project without their approval.