Chairman All Pakistan Textile Mills Association shows concerns over drop in textile exports

Lahore: Chairman, All Pakistan Textile Mills Association APTMA Mohsin Aziz expressed concern on drop in exports of textile quantity worth $305 million in December 2011 comparing with corresponding period and says “unprecedented energy shortage was prime reason behind substantial drop in exports.

“The situation may be alarming further in January 2012, as textile industry in Punjab is denied electricity and gas supplies since December 25 till date. Textile exports were 40% down in December 2011 in quantity terms. In November 2011, textile exports were also 32% down in quantity terms,” he added.

Exports of cotton yarn, cotton cloth, yarn other than cotton yarn, knitwear, bed wear, towel declined by 23%, 26%, 44%, 38%, 33% and 8% respectively in December 2011, causing $305 million loss to exports. Chairman APTMA said traditionally textile industry was crossing $1 billion mark exports monthly but it is becoming impossible since last three months.

He said APTMA is repeatedly showing concerns over the situation, but unfortunately all of its hue and cry was falling on deaf ears of policy makers. He deplored that government was not addressing reasons behind drop in exports.

Mohsin said government policymakers were not serious in resolving gas supply issue of textile industry. He said available gas is being supplied to unproductive sectors and segments, causing loss in foreign exchange. “The situation is becoming unbearable for industry and a constant inefficiency was plaguing viability of production units. Textile industry is heading towards disaster due to non-availability of energy.”

According to him, textile industry lost $1 billion exports in first half of current fiscal year and likely to lose another $2 billion in second half of this fiscal. This drop on exports would have dire impact on economy with already under pressure current account balance and Pak rupee value.

He said the industry was committed to achieve $16 billion exports during current fiscal but it would not be able to achieve more than $12 billion exports if energy crisis persists. Mohsin said interest rate is also highly unaffordable, causing negative impact on industry.

He said textile is premier industry earning foreign exchange and providing jobs to millions of workers. He urged President and Prime Minister to take stock of situation and ensure smooth supply of electricity and gas to textile industry immediately to avoid further loss of exports.

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