The Pakistan Economy Watch (PEW) on Sunday said future of textile industry seems bleak therefore the government should take urgent steps to save it from collapse. Textile is very important sector of the economy, it is the largest forex earning sector which is providing jobs to million in urban areas while millions of planters are also linked to it, it said.
Top government functionaries have repeatedly promised provision of energy on reduced cost, payment of refunds and resolution of problems but to no avail, said Dr Murtaza Mughal, the President PEW.
He said that seventy percent of large textile units are located in Punjab and thirty percent of these units are closed due to scarcity of energy hitting exports and jobs.
The textile sector is going down since years but the government has not taken any meaningful steps, which has resulted in reduced exports while Bangladesh and Vietnam continue to eat up Pakistan's share in the international market.
Dr Mughal said, "We have already lost a big share of global clothing and yarn market to rivals but policymakers are not ready to pay heed to this. Our textile exports continue to fall since last six years which has gained momentum in the last three years."
Despite a pickup in economic growth after the government submitted to an International Monetary Fund program in 2013 to avert a balance of payment crisis, exports have fallen resulting in pressure on balance of payments, he added.
He said that most factories shutting down are small or mid-sized plants unable to bear the extra cost of prolonged power outages while larger factories have invested in their own power, including diesel generators, to cope with the electricity deficit.
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