COVID-19 starts hitting textile industry

FAISALABAD: The textile industry is highly perturbed over adverse impacts of COVID-19 outbreak as foreign buyers have started cancelling and deferring export orders.

In a statement here on Tuesday, Pakistan Textile Exporters Association (PTEA) chairman Sohail Pasha said that the situation was leading towards massive de-industrialisation, significant fall in exports and unmanageable level of unemployment. He said that the government should take supportive measures on war footings to keep the wheels of industry moving. He expressed grave concern over the adverse impacts of coronavirus on economy and industrial sectors. The way the epidemic had taken its toll on the global markets, it had seriously impacted the scale of demand for Pakistani exports, he said and added that although the outbreak appeared to have slowed down in China, COVID-19 and its impacts had gone global as the EU, the US, Canada and other countries had almost sealed their borders.

If the situation prolonged, there would be unmanageable level of unemployment, he apprehended. He stressed for disbursement of all outstanding refunds of textile exporters to save the livelihood of millions of workers.

PTEA patron-in-chief Khurram Mukhtar was of the view that extreme cash flow crunch had already squeezed the financial streams and negative impacts of COVID-19 would further hit the export industry drastically. It was likely that disruptions in export shipments would remain continue for some time and the government should step out with supportive measures to cope with the abnormal situation, he added.