Textile industry losing market

ISLAMABAD: Around 10 percent devaluation of rupee against US dollar and high electricity cost have put Pakistan’s textile sector uncompetitive in the region on exports front and if no immediate corrective measures are taken, it is feared the industry may die down.
In order to resolve the lingering problems of textile sector, Federal Minister for Commerce Khurram Dastgir Khan constituted a committee headed by Secretary Commerce and comprising textile and Federation of Pakistan Chambers of Commerce and Industry (FPCCI) tycoons to come up with national action plan which will be presented before Prime Minister Nawaz Sharif for seeking approval in order to boost dwindling exports.
This was decided during a meeting chaired by the minister for commerce with the representatives of All Pakistan Textile Mills Association (APTMA) which was also attended by CEO Trade Development Authority of Pakistan S. M. Muneer and President FPCCI Mian Muhammad Idrees.
The representatives of APTMA told the meeting that the consistent devaluation of rupee, electricity cost plus inefficiency of power distribution companies, rampant taxes and other issues resulted into putting textile sector as uncompetitive in the region. For the last six years, there has been no new investment in this sector that has resulted into compromising the value addition negatively. They demanded of the government to come up with separate electricity tariff for the export sector.
According to statement issued by Ministry of Commerce, Federal Minister for Commerce, Engr. Khurram Dastgir Khan has constituted a committee headed by the Secretary Commerce, Muhammad Shahzad Arbab and comprising representatives of Ministry of Textile Industry, APTMA and FPCCI to bring about a Policy Action Plan to redress the impediments confronted by the textile industry in increasing its exports.
The Committee will present its recommendations in the next month which will be forwarded to the prime minister for swift decisions in order to reverse the declining trend in Pakistani exports.
APTMA apprised the minister about the multifarious issues faced by the domestic textile industry which have rendered the industry uncompetitive vis-à-vis the regional competitors.
APTMA proposed to bring about a level playing field for Pakistani textile producer as the regional competitors are heavily subsidising and supporting their textile industry.
The minister directed the Committee to hold negotiations with all the fourteen associations of textile sector and bring about viable proposals keeping in view the constraints faced by the Government.
The minister directed that issue of electricity provision, electricity tariffs, small taxes on textile value chain, rising cost of production of Pakistani textile products as compared to the regional competitors, lack of new investment in the textile sector, export incentives for the textile industry, availability of finances for the sector and the declining share of Pakistani textiles in the world exports may be may be thoroughly deliberated in the committee.
Representatives of APTMA demanded that the industry is in dire need of Government support as the international competitors in textile sector are eroding Pakistan’s preferences. The Government should also take stern and swift steps in case where dumping and smuggling of goods is reported, they said.