Export sector ‘Withdrawal of textile policy has shaken our trust’

KARACHI: Chairman of National Business Group Pakistan and President Pakistan Businessmen and Intellectuals Forum, Mian Zahid Hussain has said that the textile and associated sectors were taking off after a long time but the recent decision to withdraw ‘textile policy 2020-25’ will cause a crash, wasting all the efforts to promote production and exports while the country’s reputation in export markets will be at the stake.

He said the sudden decision of the government to withdraw the textile policy has shaken the country’s productive sector. He said that if the government was not satisfied with the performance of the textile sector and it was decided to withdraw the concessions, then they should have been withdrawn gradually and transparently in consultation with the concerned associations so as not to shake the confidence of the export sector.

However, leading textile millers say that they are frustrated because of the unpredictable policies of the government which can cause relocation of many industries to other countries, where there is consistency in policies.

Mian Zahid said that the current account deficit has more than doubled from the previous year’s deficit in just six months but no serious steps are being taken in this regard which will only increase the problems of the country. The situation of gas and electricity supply is far from satisfactory while relaxations to the textile sector are under threat which will add to the problems, he warned. The move regarding the textile policy will affect production and exports in such a way that their recovery will become a dream, he said, adding that the decision has resulted in sleepless nights for investors and exporters as it has fanned uncertainty and unrest.

He said that the textile sector is the largest exporter and employs millions of people. He said that following the announcement of textile policy 2020-25, investors pumped billions of rupees in the textile sector while many projects were in the pipeline which will be in jeopardy.

Copyright Business Recorder, 2022