Textile industry invested around $548.997 million during July-May 2013-14 to replace the rundown machinery with a view to boost up production, exporters said on Wednesday. "The industry has imported around $548.997 million of new machinery during the current fiscal year which is greater by 58 percent as compared to the machinery imported during last fiscal year," exporters said.
The country's import of textile machinery grows by $200.714 million (58 percent) to $548.997 million in July-May 2013-14 as compared to the machinery import of $348.283 million in the same period last fiscal year, official figures suggested. Exporters said the import growth of textile machinery is largely linked to replacement of the dilapidated equipment, which is not for business start-ups. "The manufactures have scrapped the existing overused machinery with new one," they said.
Manufacturers replace every three their old machinery with new imported one to augment their output, they said, adding that "the machinery import is not for new setups in the country as the entire industry is struggling for want of power and gas supplies that caused many to disinvest".
They said the industry mainstay units are resisting closures for lack of utilities and growing disorder in the country, forcing the manufactures to retrench a big number of workers. "Unemployment is growing in the country for declining industrial production," they said.
If the existing industrial units are not properly receiving gas and power supplies then the setting up of new businesses are unviable for investors, they said, adding that "the new setups if had taken place it would be seen on stocks exchanges of the country". Textile machinery import in May went up by $15.657 million (38 percent) to $57.244 million as compared to the machinery import of $41.587 million in May 2013, according to Pakistan Bureau of Statistics (PBS).
Calling upon Federal Commerce Minister and head of Trade Development Authority of Pakistan, exporters said the country's textile manufacturing-cum-exporting sector is in deep recession and demanded of the government to announce an emergency rescue plan to help salvage the national economy.
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