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Wednesday April 17, 2024

‘High cost hampers growth’

LAHORE: All Pakistan Textile Mills Association (APTMA) has said the high cost of doing business and overvalued currency are hampering textile exports in Pakistan, and urged the economy managers to take stock of the situation and ensure remedial measures at the earliest.Chairman APTMA S M Tanveer on Tuesday said the

By our correspondents
March 18, 2015
LAHORE: All Pakistan Textile Mills Association (APTMA) has said the high cost of doing business and overvalued currency are hampering textile exports in Pakistan, and urged the economy managers to take stock of the situation and ensure remedial measures at the earliest.
Chairman APTMA S M Tanveer on Tuesday said the textile exports are showing a stagnant trend during the ongoing financial year 2014-15. There is a serious decline of around 30 percent in exports of basic textile, particularly in fabric.
To elaborate it further, he said free fall of Euro against Pak Rupee by over 21 percent in short span of six months has added fuel to the fire, as 35 percent of Pakistan’s textile exports are destined towards the EU region.
“Erosion of competitiveness has nullified the benefits of GSP plus market access to European Union,” he added.
Tanveer said the textile exporters are facing troublesome situation as proceed value has reduced by large due to the currency difference, adding that the textile exporters need an urgent support to get out of such a messy situation.
In order to minimise the impact of the high cost of doing business in Pakistan, Chairman APTMA said the comparatively high energy tariff and interest rates, coupled with liquidity constraints due to outstanding refund claims of exporters require speedy review, as the cost of doing business on account of these factors has hit hard exporting industry. According to him, the cost of energy for textile industry in regionally competing countries is not more than eight cents as against 13 cents in Pakistan.