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April 22, 2015

Aptma concerned over free fall of textile exports

 
April 22, 2015

LAHORE: All Pakistan Textile Mills Association (Aptma) Chairman S M Tanveer has expressed concerns over the free fall of textile exports in quantity and value terms during March 2015 against March 2014, a statement said on Tuesday.
The overall textile and garment exports have declined by 16.23 percent in March, as compared to the previous year, he added.
The exports of cotton yarn has declined 29.36 percent in terms of value and 12.99 percent in quantity, followed by cotton cloth 14.45 percent in value and 37.57 percent in quantity terms, bedwear 16.94 percent in value and 15.15 percent in quantity terms, towels 19.03 percent in value and 23.51 percent in quantity terms, garments 5.20 percent in value and 12.57 percent in quantity terms, synthetic 24.87 percent and 32.99 percent in quantity terms and made-ups 13.62 percent in value terms. Knitwear is the only product having registered 28.53 percent growth in quantity terms, but it has also decline by 7.41 percent in value terms.
Tanveer said Aptma has been advocating for the restoration of viability of the textile industry by lowering down its cost of doing business by keeping the rupee at its realistic value.
He also demanded uninterrupted energy supply, both electricity and gas to the export-oriented textile industry at regionally competitive rate and encouragement to the industry to take investment initiatives to create exportable surplus.
The textile mills are closing down their operations one after another.
Consequently, he said, around 30 percent capacity across the textile value chain has duly been closed.
Potential investors are reluctant to undertake investment decisions under the prevailing situation, he added.
Furthermore, he said, an unchecked imports and smuggling of textile clothing products are making inroads into the domestic market. The industry is unable to sustain in both domestic, as well as international markets.
A recent study by an international consultant has revealed that Pakistan’s textile industry has lost comparative advantage to the regional competitors on account of high cost of energy, finance and wages, technology and raw materials disadvantages, system inefficiencies, opportunity cost of funds withheld by the government and zero investment incentives, he said.
The loss of market share is also due to the special incentives and market access secured by the governments of competing countries, he added.
He stressed on the government to take measures to arrest the declining trend of the textile industry exports.
Also, he said, the prime minister should constitute a task force of textile associations and chair regular meetings to review exports and investment performance on a monthly basis.