Textile sector in the firing line, courtesy export fiasco
19 Oct '06
2 min read
All Pakistan Textile Mills Association (APTMA) has predicted that about one million spindles will shut down in next 12 months because of lethargic business in textile sector and ever declining exports.
Textile experts have always blamed the Government of bias and are wary of declining market share which would kill textile industry. They fear that US$10.6 billion exports target will be a far cry and asked Government to interfere to save the industry from blues.
Akber Shiekh, APTMA spokesman informed that textile exports have started sliding and most of the companies have started showing negative trend. Lethargic business activities have also created their impact on textile industry.
Closure of one million spindles will create shortfall in the supply of yarn for domestic units which are already facing problems due to less production of cotton.
One of the biggest factors responsible for decline is lack of effort to get textile deals from western countries compared to other countries like India and China. Textile companies in these countries are on a buying spree which is an ominous sign for Pakistani units.
Another factor is the absence of orders of textile made ups from foreign firms and they are loosing orders even from their most reliable partners like Westpoint of USA which has shifted its units to Bahrain.
Export to European market has shrunk as well and they have been loser because of higher cost of business. APTMA has cautioned Government to halt the decline otherwise permanent damage to the industry can not be avoided by long and medium term measures.
APTMA Chairman, Shafqat Rllahi asked government to take urgent steps to cut down cost of production and zero rating various outputs. The interest rates have gone up three times and gas prices have increased as well. He urged Government to take appropriate measures to save the sector from extinction.
marketing@alchempro.com
