Textile machinery imports declined by 22 percent in eight months of the current financial year as industrialists did not find textile sector attractive for further investment, industry sources told Business Recorder here on Sunday.
They said that investment on balancing, modernisation and renovation (BMR) of textile has been continuously declining since 2004-05 after a record of $928.6 million investment in a year. According to economic survey, textile machinery imports declined to $817.24 million in 2005-06, to $502.97 million in 2006-07, and to $281.725 million in July-February of 2007-08.
The textile sector provides about 67 percent foreign exchange and 40 percent jobs to the industrial workforce directly and 45 percent indirectly to the farmers and rural labour of the country.
Sources said that the main reason for depression in this economic lifeline of the country is the rise in bank interest rate from 4.5 percent to more than 11 percent, decrease in cotton production, high cost of energy, long hours of load shedding, higher wages of skilled workmen as compared to Pakistan's international competitors and general law and order situation of the country.
They said that the Shaukat Aziz government ignored the manufacturing sector and promoted consumerism in the country as banks were encouraged to give liberal loans for purchase of automobiles and other electronic consumer goods. They said that the large-scale manufacturing growth rate, which was 19.9 percent during 2004-05, has come down to about 4 percent, which amply reflects the state of manufacturing industry in the country.
They said that All Pakistan Textile Mills Association (Aptma) had demanded decrease in bank interest rates for promotion of investment in this sector. It also expressed concern over the 30 percent in crease in the electricity tariff in a year.
They expressed hope that the new government would announce a package for revival of the textile industry so that the alarming imbalance between imports and exports could be bridged.
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