The Pakistan Textile Exporters' Association has demanded of the government to bail out the textile industry and exports from the current crisis by removing hurdles and provision of necessary incentives to increase the textile exports of the country.
After chairing the meeting of executive committee of the Association here on Wednesday, Wasim Latif, chairman, and Adil Manzoor Ellahi, vice chairman of the Association, said that various bottlenecks plaguing textile exports were discussed and a four-point dossier was formulated, along with proposals and suggestions to save the textile industry.
They said that the most ticklish issue was the rising cost of production as prices of cotton, being basic raw material, have skyrocketed in domestic market. They apprehended that the situation would worsen further in the coming months as cotton crop in most of the cotton growing areas has been washed away during the flood. Immediate and appropriate measures should be taken to deal with the emerging challenges, they demanded. They said that the Trade Corporation of Pakistan should intervene in the matter and create buffer stocks of cotton to regulate cotton prices in the local market. They also demanded restriction on cotton export, for the time being, and said that only surplus cotton should be allowed to be exported. Taking cue from the trend in cotton prices, polyester fibre (alternative raw material) prices were also raised in domestic market. With abnormal high jump in raw material prices, the cost of value-added textile products had enhanced enormously and the export of finished goods has become unviable in the face of tough competition in the international market and the exporters are finding it difficult to continue their production as well as to meet their commitments made with foreign buyers, they said.
Duty-free import of polyester fibre should be allowed, they demanded. PTEA office-bearers said that gas was imperative to run the wheel of industry. But without its availability, no one could even think to run industry. They said that textile sector is facing depression and stagnancy since last year continuously due to energy crisis. Twin menace of price hike and load shedding is ruining the industrial sector and hampering the textile industry, they said.
All over the world and also in the regional countries, the governments help their industries by providing them cheaper inputs enabling them not only to keep the wheel of industry running but also to successfully compete in international markets. However, in Pakistan the industry is not only burdened with high cost of energy but also disrupted supplies resulting in loss of productivity. Gas and electricity load shedding should be equal across the board all over the country, they demanded.
They expressed grave concern over stuck up amounts of exporters on account of refunds of sales tax and drawback regime creating liquidity crunch. Pakistan's exports were already under pressure due to prevailing economic, financial, industrial crisis in the country as well as persistent law and order situation which were badly affecting the industrial and trade activities, the productivity output and workers employment, they said.
Textile export sector is a major forex earning sector to the tune of ten billion dollar plus per year. Textile exports of the country are crumbling and the industry and business were squeezing due to non-availability of funds, they claimed.
PTEA representatives urged the government to take cognisance of this serious matter by restricting raw cotton export, allowing duty-free import of polyester fibre, allocation of funds for payment of drawback and sales tax and spreading equal shedding of gas and electricity across the board all over the country to enable the textile exporters to retain their hard won export markets at this time of tough competition in international markets.
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