The textile sector, which continued to suck most of the liquidity from the banking sector, has started transforming its separate activities into a complete unit to deal with the time-bound marketing competition, said textile millers on Saturday. They said the credit demand by the textile sector would continue in the future despite record 4 to 5 billion dollars investment in the last four years.
With the beginning of new era with WTO regime, 'time' has emerged as the most powerful segment in trading activity, they said.
Textile mills owners said that to overcome the 'time' factor, composite units are essential and this has kept the market hot for credit demand. "I believe that the textile sector has borrowed over Rs 120 billion in the last eight months which reflects the continued heavy investment in the sector," said a banker.
"The private sector's highest credit off-take record is due to highest off-take by textile sector which is about 40 percent of the private sector total off-take," he said.
He said that compared to last year, the textile sector was borrowing more despite rising interest rates.
The fast import of machinery by the textile sector has widely affected trade balance and the trade deficit is going to register highest record by the end of the year despite 10-12 percent export increase during the same period.
Textile millers said that with the entry of China, exporting activity has witnessed a vital change and textile industry in the countries like Pakistan are taking a different shapes.
"Chinese have large complete one-unit and they are able to provide finished products as early as anyone can do," said Malik Aziz, an exporter of finished products. "If we fail to get hold of time problem, we would fail to find market and are bound to lose the traditional markets," he added.
"The abolition of quota system has created both opportunities and problems at the same time, and made the competition from serious to severe," said a garment exporter.
Textile millers said the flow of liquidity would continue towards the textile sector, as transformation is still far from its completion.
"We have not set up any target and time for the completion of transformation, but it is taking natural course and needs to develop maximum composite units as per market requirement," said Shafiq Anwar, a yarn manufacturer and exporter.
Yarn export has increased from Pakistan along with the increase of finished products like garments but this is because of large production of cotton crops in the country.
Spinners said that even in the local market demand for semi raw material like grey cloth has increased as the trend for exporting finished products is on the rise. This would help the country increase its exports and achieve the target.
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