The decades-old Pakistan based international textile buying houses have shifted to India, Bangladesh and Middle Eastern countries due to bomb blasts and deteriorating law and order situation, textile industry sources told Business Recorder, here on Friday.
They said the traditional buying houses of Pakistani products have told Pakistani producers/manufacturers to come to their new countries of residence along with their products/samples if they wanted to get supply orders.
They said the change of residence and visa restrictions imposed by some countries have increased the cost of doing business in Pakistan, closure of 50 percent knitwear units and 20 percent shutdown of other units such as bed wear, towel, readymade garments and other textile units.
They said the textile industry, which provides 65 percent of the total foreign exchange earnings, and about 40 percent jobs to the farm and industrial labour force, is passing through a critical period.
In the first seven months of the current fiscal year, there has been 6 percent decrease in the export of cotton yarn, 8.3 percent in cotton cloth, 11.2 percent in knitwear, 6.2 percent in bed wear, 6.7 percent in towel exports over the corresponding period of last year.
Analysts say textile industrialists are eagerly awaiting installation of the new government which may be in a position to get market access from the United States, Canada, European Union and Japan for the Pakistan textile products.
They point out that as a frontline state, Pakistan has suffered the most both economically and financially besides paying the highest cost in men and material for its participation in the international war against terrorism but in return the Pakistan leadership failed to get commensurate compensation from its rich and developed partners.
They said though USA, Canada, EU and Japan constitute 20 percent of world population yet they contribute 80 percent of the world GDP. They said the new government should renegotiate its terms for participation in the international war, which must include Free Trade Agreements, removal of visa restrictions, Generalised Special Preference (GSP) and easy access to their markets.
They regretted that the outgoing government did not seriously discuss this issue with the international coalition partners which has now resulted into gnawing trade imbalance, decline in Pakistani exports, social inequities and upheavals in the country.
They said that PPP/PML-N/ANP/JUI coalition government would have the mandate of the nation, therefore, it would be in a far better position to look after the country's economic interests. They said that if the EU countries could give GSP on export of bed wear on anti-narcotics efforts, then war against terrorism is far more important and grievous exercise.
They demanded that instead of Fata and earthquake areas, the United States should declare entire Pakistan, specially its rural areas as Reconstruction Opportunities Zones so that the Pakistani nation should take part in the international war with conviction and vigour.
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