Due to continued textile crisis, which has engulfed the entire textile industry in the past recent years, the import of Italian textile machinery has been greatly hit and reduced from all-time high import of $930 million to $500 million in the fiscal year 2007.
This scenario is causing anxiety among the Italian manufacturers, as Pakistan is the fourth most important market of their textile machinery. These views were expressed by Francesco D'orio of ICE Roma said, while reading the speech of Italian Trade Commissioner Pintus in his absence at a seminar on Italian textile machinery was organised by Italian Trade Commission-Karachi here on Monday. The Italian Trade Commissioner was to address the seminar but he had to leave for Rome for some urgent matters.
Expressing his grave concerns he said that the Italian textile machinery was the only sub-sector showing the negative growth of 38 percent. On the occasion, Italian Consul General-Domenico Benincasa, Giovanni Sommariva of ICIMIT, Deputy Trade Commissioner-Italy, A R Daudpota, President of KCCI-Shamim Ahmed Shamsi, Textile Commissioner-Idres Ahmed and Vice President of Aptma Iqbal Ibrahim were present, besides a large number local textile manufacturers and exporters.
He said that Pakistan's textile sector is suffering largely with only 3.5 export growth during current fiscal year, which was not significant. Indications of decline in the textile sector at the end of Multi-fibre agreement in the transition phase, which could prove a serious test for the sector and economy at large, he maintained.
He said that export growth in some of the main sub-sectors alarmingly going below zero (-4 percent for cotton cloth and bed wear) while about the cotton yarn, he observed, similar disappointment in growth by only 3 percent.
He added that such an overwhelming sluggishness in the textile sector growth, Pakistan might not get in return against its huge investments had been made in the spinning sector over the last six years. "No relief in sight in fiscal year 2008 as in the fist quarter (July-September) the growth of textile export went as low as 0.5 percent," he maintained.
Francesco urged the government of Pakistan to help this sector on a permanent basis to sustain competition in the world markets against its regional competitors and also extend Italy's support to the local industries.
Speaking at the seminar, Idres Ahmed said that future markets of textile would base on quality and price of products and held China a major competitor with rapid growth of textile products. Urging on textile units, Commissioner Textile said that each of them should focus on the development of labours.
Shahmim Ahmed Shamsi in his speech termed the Italian market 'import' for having major share of textile products, saying that Italy was the major textile machinery exporter to Pakistan.
He pointed out that shortfall of about three million bales of cotton had made the textile product expensive besides increasing oil price in the world markets, which could result in decline of import of textile products. Urging upon EU, he said that it should reconsider its duty-structure of Pakistani commodities. Vice-President of Aptma Iqbal Ibrahim and Italian Consul General, Domenico Benincasa also addressed on the occasion.
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