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Pakistan - PTEA urges government to rescue textile industry
Release time:2015-10-10 15:10:59      Views:

News on October 09, 2015

Pakistan Textile Exporters Association (PTEA) has urged the government to rescue the textile industry as it has lost its viability against the regional competitors; our textile exports are at a comparative disadvantage in respect of production cost in the region. 

Commenting over prevailing serious situation, Asghar Ali, Chairman Pakistan Textile Exporters Association said that due to inefficient and unfriendly socio-economic environment, the cost of production in Pakistan has escalated enormously due to intermittent rise in energy tariffs, crippling burden of taxes and lack of finance rendering our exports uncompetitive in international market. 

Taking advantage, rival countries are creeping into our hard earned traditional markets throwing the Pakistani textiles out, he lamented. Textile industry, particularly in Punjab is in grip of unprecedented crisis since many years and is struggling hard for its survival. 

Energy constraints have halted the industrial wheel and high production cost has disrupted the competitive edge of textile exports in international market. Influx of foreign textile goods in domestic market is badly damaging the local industry, he said and added that regional rivals, with their Government support, have accelerated export growth and increased their market share in global textile trade while Pakistan has dropped its share. 

Quoting the growth rate, he said that from 2008 to 2013, Bangladesh achieved 160% growth in textile exports. Similarly China gained 97% and India 94% while Pakistan's textile export growth remained 22% in the same period. With such high growth, Bangladesh has increased its share in global textile trade from 1.09% in 2006 to 3.30% in 2013. Similarly, India increased from 3.4% to 4.70%, China from 27% to 37%; whereas while Pakistan has dropped from 2.20% to 1.80%. Due to conducive policies, heavy investment has also been made in terms of machinery in competing countries. During 2008-13 periods, China added 35.29 million spindles; while India added 14.20 million and Bangladesh added 1.98 million spindles in textile sector. In Pakistan, only 1.02 million spindles were added in five years. 

Terming energy shortage a major hurdle in export growth, PTEA Vice Chairman Arif Mahmood Qureshi said that textile industry particularly in Punjab faced 27 percent gas load shedding in 2010, 41 percent in 2011, 46 percent in 2012, 66 percent in 2013, and 70 percent in 2014. Burden of incidental taxes, provincial cess, system inefficiencies and withholding tax regime have further complicated the situation. The government should provide a level playing field to remain afloat and compete well with rival countries in international market, he demanded. Quoting the example he said that many incentives under Technology Up gradation fund Scheme, Focus market scheme, Focus Product Scheme and Export Promotion Goods Scheme are available to Indian textile exporters. 

PTEA urged the government to take cognisance of serious matter and step up to rescue precious forex earning sector from disaster as challenges like energy crisis and high production cost is holding this mainstay of national economy back from growing up to full potential. Government should restore the competitiveness of the industry by ensuring uninterrupted supply of gas and electricity at regionally affordable rates, liquidation of all pending refunds, removal of all innovative taxes and restoration of zero rating regime for textile export chain. 

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