No minister for four months: government paying little or no attention to textile sector

It seems that the government is least interested to improve textile sector in the face of gradual decline in exports, as there is no minister for the last four months, which is further accumulating the problems, official sources revealed. The ministry lacks co-ordination without the head to run its affairs. Senator Abbas Khan Afridi left as Minister on completion of his tenure as Senator in March but no new appointment has so far been made to fill the slot. Most of the important decisions regarding textile policy such as Export Development Fund (EDF) and energy crisis are hanging in the balance.
The call by the All Pakistan Textile Mills Association (APTMA) to close down the textile is an alarm bell for the authorities concerned. According to the Pakistan Bureau of Statistics (PBS), country's textile exports for the month of May 2015 lowered by 2.85 percent year-on-year against May 2014. Provisional figures state in May 2015 exports amounted to Rs 198.851 billion as against Rs 202.874 billion in April 2015 and Rs 208.316 in May 2014, showing a decrease of 1.98 percent and 4.54 percent respectively.
Total textile exports during the period were recorded at Rs 114.158 billion against Rs 117.50 compared to the corresponding period last year. With exception to readymade garments that recorded a growth of 32.72 percent, all other major textile exports declined during that period. Exports of knitwear declined by 8.43 percent, bed wear by 6.86 percent and towels by 6.28 percent in May 2015 against May 2014. Sources revealed that one reason behind the decline in textile exports is non-existence of full time minister of textile. Non-provision of gas and power load shedding, especially in Punjab was responsible for decrease in textile related products and its exports.
However, the call by the All Pakistan Textile Mills Association (APTMA) to 'voluntarily' close down the textile industry because of the losses has increased the uneasiness of the ministry. According to sources APTMA has been assured by the ministry that issues would be raised with ministries concerned.
Chairman APTMA S M Tanveer told Business Recorder it has been decided to 'voluntarily' close down the textile industry as the cost of doing-business in the textile sector has increased manifold and it is no more feasible. Due to energy crisis, the industry has already lost 30 percent capacity while the remaining would be closed after finishing the cotton in hands within one month.
Tanveer said that the issues were raised with Commerce Minister Khurram Dastgir Khan and Textile Ministry officials. The industry has proposed zero rated status, uniform electricity rate at affordable price, addition of Ginning and Spinning sector in drawbacks on local taxes and levies.