Pakistan Textile Exporters Association Chief Patron Khurram Mukhtar told WealthPK that the textile sector is facing the biggest problem of expensive energy.
Similarly, he said high-interest rates have hit industrialization in Pakistan hard and called for a cut in the key interest rate. “The cost of setting up a new industrial unit is very high at an all-time high-interest rate and investors tend to be risk averse,” he added.
Mukhtar said that due to tough economic conditions, the textile sector was not functioning at its optimum level.
We cannot fight the growing trade deficit without strengthening exports.
Ahmed Ali, another textile exporter, said successive governments have failed to harness the potential of the textile sector to rid the country of foreign exchange woes and create jobs for millions.
He said governments never gave weight to the suggestions of textile exporters. He also criticized the government for withholding their sales tax refund.
“How can a business function without finance? The withholding of refunds is leading to financial distress,” he said, adding that the government had recently promised that frozen funds amounting to billions of rupees would be released soon, but to no avail.
“We have the capacity to outperform our regional trade rivals, including India, Bangladesh and Vietnam. To achieve this task, we need to have a smooth supply of electricity and gas at affordable prices along with raw materials. These facilities are essential components for the operation of the textile sector,” he said.
He said that without introducing export-friendly policies with inputs from stakeholders and ensuring policy coherence, Pakistan could not achieve sustainable and inclusive economic growth.
He said efforts should be made to ensure rupee-dollar parity, which is hitting the export sector hard. “As the demand for textile products in the international market is increasing, we must seize this opportunity and make our products competitive.”
He also urged the government to immediately ban the export of the raw material as it would neither benefit the textile sector nor the national kitty.
Ameen Ahmed, a scrap yard owner, told WealthPK that many power loom owners have sold their machines citing rising gas, electricity and raw material expenses. However, the situation is different now as unit owners are selling machines forced by tough economic conditions,” he said.
