In a desperate move on Tuesday apparel sector demanded of the caretaker government to link provision of research and development (R&D) to the cotton yarn sector with the commodity sales in the local market.
Representatives of the country's sole Pakistan Apparel Forum (PAF) consisting of Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association (PCFAMEA) and Pakistan Knitwear and Sweater Exporters Association (Paksea) told Business Recorder that skyrocketing prices of cotton yarn had brought this sector on the verge of a closure.
They said that government should forthwith link the provision of R&D with the cotton sale in the local market. Reiterating the primary demand, Javed Bilwani, Chief Co-ordinator of Pakistan Apparel Forum (PAF), said that the caretaker government should provide the cotton yarn sector with the R&D but make it sell the commodity in the local market in order to salvage the dwindling value-added garments sector.
He said that about five months ago, the price of good quality cotton yarn per pound was Rs 62 which had gone up to Rs 73 presently and the medium quality was available at Rs 53 per pound had reached Rs 65. Consequently, the export orders booked earlier have become difficult for them to fulfil on time and faced with the financial losses running into million of rupees in current season, he added.
Enumerating the losses after the increase in gas and cotton yarn prices, he said that about 40 percent of the value-added garments industry had come to a closure, whereas the rest was striving hard to sustain the losses. However, he urged upon the government to lesson the huge increasing financial burden from this industry by providing the raw items on reasonable prices in the local market.
Javed maintained that so far several industrial units had closed operations, as production in about 50 stitching units, 15 knitting units and 10 dyeing units had been shut recently.
Khawaja M Usman, Advisor to PCFAMEA expressed apprehensions over the declining trend of the value-added garments in the world market, saying that the existing units were still faced with challenges like skyrocketing prices of cotton yarn and gas.
"It has become difficult for this sector to compete with its regional and global textile players amid unfavourable circumstances emerged from high cost of production," he pointed out and maintained that the existing units could not fight these countries in global competition.
Governments of other countries like China, Bangladesh and India in the region had played a pivotal role in aggrandising their respective local textile sectors particularly value-added garments one through concessions and subsidies in various categories, he added.
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