Towel Manufacturers Association of Pakistan (TMA) has read with anxiety the new labour policy envisaging an increase in minimum wages. In a statement to the press here on Saturday, TMA Chairman Waqar Alam said the anxiety was not because the trade and industry opposed the increase but because the exporters were seriously concerned about the impact it would have on the competitiveness of Pakistan's exports, especially those of value-added textiles.
He said value-added textiles were going thorough a phase of intense competition from India, China and Bangladesh where the wage and productivity profile was already more competitive than that of Pakistan. "Value-added industry is unable to compete in the face of high electricity prices, high inflation, power outages and alarming law and order situation. Survival would not be possible also because of the blow given by the astronomical increase in local cotton yarn prices," he added.
Waqar Alam said the basic problem was that the government had not been able to ensure the survival of the industry that would provide employment. "If the value-added textile industry fails there will be no employment and the issue of increase in wages will be irrelevant. Only if they are employed, the workers will get benefit from the new labour policy."
He said the employment of workers could be ensured by placing an immediate ban on the export of cotton yarn. The ban on the export of cotton yarn was the basic remedial measure, which would result in the restoration of competitiveness of Pakistan's value-added textile industry and continued employment of millions of workers associated with it, he added. He urged the Ministry of Textile to act quickly to save the value-added textile industry.-PR
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