The All-Pakistan Textile Mills Association (Aptma) has called for giving specific targets to Pakistan's missions abroad so as to promote trade ties with different countries. Aptma chairman Arif Saeed told Business Recorder here on Monday that "we need to project a positive image of Pakistan abroad". He said that textile industry is one of the most important industries of the country, which contributes 11 percent of GDP, with exports of $8.3 billion annually, and employs over 40 percent of the workforce in the manufacturing sector.
He said that the private sector of Pakistan is ready to work with the government to develop alliances with countries for relocation of their industry based on competitiveness. "We see China as a potential trading partner and wish to take advantage of our proximity and special relationship with that country", he said.
"Even though our tariffs are among the lowest in the region, we have to anticipate non-tariff barriers," he added.
He said that the data available to the industry for business planning from different departments was unreliable. He asked the government to legislate and implement a scheme to register small industrial units. The industrial associations need to be strengthened and facilitated by government, he said. He added that the Pakistan is blessed with the fourth largest cotton crop in the world and cotton is being converted more efficiently than ever before.
"This year we have had the largest ever cotton crop in Pakistan's history, and the industry has stepped up to the plate, buying at record levels", he said.
He said that consumption estimates this year are in excess of 14 million bales, and could be significantly higher, allowing for the shift away from expensive polyester.
He said that the current system of TCP intervention is also not in line with the government's free market policy. It is also evident that the industry's increased consumption leaves little as exportable surplus. The industry feels very strongly that it should, at the very least, be allowed to bid in open tender whenever cotton procured by TCP is made available, he added.
"Of the major cotton producing nations, Pakistan has the lowest stock-to-use ratio, and is therefore vulnerable in years of crop failure. Our strategic location makes this an ideal port for warehousing of Central Asian and other regional growths. We should examine ways to attract foreign merchants to use our EPZ for warehousing", he added.
He said that steps should be taken to encourage the use of man-made fibre. The government must ensure availability of man-made fibre at internationally competitive prices and find ways to eliminate any protection available to MMF producers. He said that creation of a modern, reliable infrastructure to reduce lead-time and cost of transportation is an emerging priority for the industry.
The industry has already started feeling the pinch due to the rapid growth, and inadequacy of the supporting infrastructure for transporting the exportable surplus from up country manufacturing clusters.
He proposed to upgrade the road network, apart from developing rail link to the port to ensure transportation of goods.