The US textile buyers have shown reluctance in striking business deals with Pakistani exporters fearing their consignments might not reach the transatlantic markets in time because of continued unrest in the country's prime seaport city, exporters said on Monday.
"The Karachi unrest is causing worries and the local manufacturers-cum-exporters of value-added textile are disturbed whether or not they will be able to ship their consignments to foreign buyers. The are also facing at least Rs2.5 billion loss for halt in production frequently," they said.
The country's largest seaports city continues to undergo spontaneous violence, which not only caused serious delays in industrial production and shipments but also inflicting billions of rupees loss on local traders. The violence in last two weeks claimed over 100 lives and left even more injured.
"The global buyers are watching Pakistan's internal security situation very closely and are very cautious at finalising textile deals fearing whether the consignments will reach their markets in time or not," said Zonal Chairman of Pakistan Readymade Garments Manufacturers and Exporters Association, Javed Chinoy.
He said at least 10 percent of industrial production is affected on a daily basis, besides delaying the shipment of foreign consignments by at least 15 to 20 days. "A day of violence causes at least 15 to 20 days of shipment delay," he pointed out.
He said the country's value-added textile sector was already undergoing severe problems of power and gas shortages and the continued violence in Karachi and elsewhere were virtually inflicting unbearable loss on the products manufacturers-cum-exporters.
Chinoy said "President Zardari's orders should be implemented to arrest the increasing lawlessness in the city, but usually they were seen ineffective to restore peace," adding that the government should address the causes of the unending troubles.
Showing worries, the zonal head of Prgmea said the US was already facing economic recession, which made its textile businessmen less interested in foreign buying and delays in shipments could result in cancellation of billion dollars of consignments. "If it happens Pakistan is likely to lose billions of dollars foreign exchange," he said.
"Global traders were seeing Pakistan unrest an internal chaos and apprehensive of striking business deals with Pakistani businessmen," Chinoy said.
Co-ordinator of Pakistan Apparel Forum, Muhammad Javed Bilwani said the country was suffering Rs2.5 billion loss per day from the delays in shipments in the wake of persistent chaos in Karachi.