Government policies of ever increasing cost of manufacturing and increasing smuggling of fabrics from abroad have crippling impact on local textile and garment manufacturing industry. The manufacturers of cloth facing serious financial problems due to higher price of locally produced cloth as compared to available smuggled fabrics in local the markets.
Demand of smuggled foreign fabric is increasing due to huge difference between prices of locally produced fabrics and smuggled fabrics. Talking to newsmen, former Senior Vice President of Karachi Chamber of Commerce and Industry (KCCI), Muhammad Hanif Lakhani recalled that few years back textile industry was making rapid progress and was earning substantial foreign exchange though exports.
However, the government changed its policies and started making frequent upward revision of power, gas tariffs, oil prices and other inputs cost, which affected the local industries seriously and manufacturing costs have gone up tremendously making locally products goods uncompetitive in international as well as local market. This has resulted in decline of sale and closure of industries converting them in warehouses.
He feared that government revenue collection would also suffer to a large extent if the present trend remains continue and government failed to reduce cost of doing business as well as overcome the smuggling. He urged the government to take appropriate measures to stop export of yarn and its prices should be kept at reasonable level.
Former Vice President KCCI, Abdullah Zaki said that the textile sector facing serious problems owing to increase in price of yarn in local market, its non-availability. He claimed that over 60 lakhs dollars' export orders of towel have been concelled due to high prices and non -availability of yarn. He said that Bangladesh and China are supplying fabrics at very low price in international market owing to huge export of yarn from Pakistan as well as low cost of production in these countries.
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