Hosiery on verge of collapse

29 Sep, 2007

The alarming decline in hosiery exports may also result in grinding halt if immediate remedial steps were not taken to bail out the crisis-ridden textile sector. This was stated by Naeem Ahmad, Vice Chairman, Pakistan Hosiery Manufacturers Association (North Zone), while talking to newsmen after an Iftar dinner hosted by PHMA (NZ).
He said: "Hosiery is one of the most important segments of value-added textile sector. It has been under pressure for the last many years due to multi-facet internal and external factors". He said PHMA had warned the government and the concerned government department about the fast impending crisis well in time but they failed to give a serious thought to it.
"Now the situation has been aggravated and most of the hosiery units are on the verge of collapse", he said. He said this was due to the rising rates of electricity, gas and other utilities in addition to the soaring bank interest rates. He warned the government that Pakistan would lose its hard-earned foreign markets if immediate corrective measures were not taken.
He said many spinning units have already been closed down and exporters were helplessly running from post to pillar to keep them economically viable in the markets. He urged the government to take necessary measures without any delay. He said collapse of hosiery sector would open floodgates of unemployment and lawlessness in the country in addition to inflicting colossal loss to national economy.

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