APTMA reviews economy situation in the current perspective
24 Dec '05
2 min read
Lack of sustaining infrastructure has led the textile industry to cease expansion operations in Pakistan.
Industry has been investing between $1–2 billion for the past five years.
The members of All Pakistan Textile Mills Association (APTMA) met in Lahore to discuss financial situation of the country.
After a short period of upturn, economy is facing serious problems again, they viewed.
The trade gap widening to $10 billion per annum and the foreign exchange reserves dropped by $75 million per week, at approximately $3–4 billion per year.
Pakistan Steel Mills is operating at just 40 percent of its capacity.
Bank interest rate has gone up from 5 to 12 percent.
Prices of gas, oil and electricity are continuously rising and yet, proper supply is not guaranteed.
The gas authorities warned APTMA that the gas shutdown, that was affecting 25 percent of the textile industry, was most likely to increase in future.
They explained that they did not have the gas or the distribution system to supply for the aggressive textile industry expansion.
Flow of electricity will also be scarce in the coming years.
Members acknowledged that the economies of the neighboring countries, India and China, were growing at 8 –10 percent due to the increasing exports.
Pakistan was concentrating on consumerism while ignoring the export sector.
The shutting down of 150 textile units in Lahore/ Sheikhupura due to short supply of gas would serve as a big turn off to the investors who still want to enter Pakistan.
marketing@alchempro.com
