The textile industry has feared further rise in cost of doing business with the latest increase the in petroleum products. The basic textile industry has termed the government decision as a blow to the already inflated transportation cost amid high cotton season. The value-added sector has called it stabbing in the back in a situation where the energy and cotton yarn prices have already hit through the roof.
Talking to Business Recorder, Chairman of All Pakistan Textile Mills Association (APTMA), Punjab, Ejaz Gohar said the government itself was adding inflation by such increases. According to him, the industry was eyeing for single digit market in near future, which is proving a far-fetched idea in the presence of such increases on input side.
He said the inland transportation cost was already out of proportion due to the missing links in the infrastructure set-up of the country. The Punjab APTMA Chairman said the cost of transportation between Karachi and Lahore was already doubled to the goods shipped from Pakistan to Hong Kong in terms of tonnage because of the missing links in the infrastructure.
"Cost of transporting from Karachi to Lahore is Rs 70,000 per container, ie 900 dollars, as against Rs 32, 000 per container, ie 400 dollars for shipping from Karachi to Singapore," he said. He lamented that the industry was missing credible logistic support from the Pakistan Railways in general. There was no master plan on the part of the government to bring the railways in national transportation system, he added.
"Surplus exports are lying in the upcountry, but it is not possible to export them timely because of the transportation problems, fuelled further with the repeated increases in oil and energy prices," he said. According to him, the government should introduce shuttle trains between Karachi and Lahore to facilitate the industry and ultimately the economy.
Former chairman of Punjab APTMA Adil Mehmood said an increase in oil prices amid high cotton season would have negative impact on the basic textile business. He said the transporters increased the fare by Rs 2,000 to Rs 3,000 immediately. According to him, the government was increasing oil prices in a situation when the oil prices in the international market were declining.
"The oil prices has shrunk further by six dollars a barrel on Tuesday, but it is witnessing an increase in Pakistan, which is not fair," he said. Adil feared that increase in oil prices would also increase cost on agriculture tubewells. The value-added sector has also raised concerns on this front, and pointed out that everyday increase in the input cost was putting Pakistan's value-added sector into a weaker position against the regional competitors.
Chairman of Pakistan Sweater Exporters Association (PAKSEA) Adil Butt said the value-added sector was already licking its wounds amid irrational increase in power, gas and cotton yarn prices in the country. "Present increase in oil prices would prove last in the value-added sector's coffin," he added.
According to him, the regional competitors are being facilitated by their respective governments through rebates and tariff concessions, which is not the case with Pakistan's value-added sector. The textile industry urged the government to withdraw latest increase in petroleum products in order to facilitate the industry on transportation front and bring the national economy out of woes.
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