Chairman, Pakistan Textile Exporters Association (PTEA), Mian Tahir Ishaq Bharara has expressed concern over 5.78 percent decline in textile exports during August and demanded of the government to issue notification regarding R&D immediately to give support to the declining export.
Talking to newsmen, he said that textile export in August 2007 was 905.12 million dollars, which has dipped to 805.6 million dollars this year. Similarly, the textile export in July-August 2008 stood at 1.7 billion dollars as against 1.8 billion during the same period last year.
He said that decline in textile export to the tune of 4.21 percent is an alarm for national economy and this dip nose trend has been witnessed in spite of devaluation of Pakistani rupee. He contradicted contention of some circles that were attributing devaluation as increase in exports. He made it clear that benefit of devaluation always goes to the foreign buyers while R&D could play a role in increasing exports by cutting down the production cost.
He said that cabinet committee has already approved R&D and finance ministry has allocated Rs 12 billion under this head. He said that only a notification by textile ministry is required which could not be issued despite lapse of one full month.
He said that funds for exporters have been blocked since June 2008 and it was having negative repercussion on exports. Chairman PTEA said that concerned quarters should assess the gravity of this situation and take practical measures to save the textile sector from total collapse.