FAISALABAD:Pakistan Textile Exporters Association (PTEA) has demanded the government’s intervention to save textile industry from total collapse.
PTEA spokesman in a statement here on Friday said, “Our textile exports are witnessing drastic downfall on account of disadvantage in respect of production cost.” If the government does not interfere on urgent basis, the textile industry might lose its compatibility against the regional competitors at international markets, he apprehended.
Terming high production cost as the major factor behind this decline, he said that due to unfriendly socio-economic environment, the cost of doing business in Pakistan has escalated enormously due to intermittent raise in the prices of raw materials and production inputs rendering the exports uncompetitive in international market.
He termed the Large-Scale Manufacturing (LSM) sector as a major economic driver, accounting for almost a quarter of the total GDP and said that in May 2023, LSM sector experienced a concerning 14.37% year-on-year decrease. The 11-month period of FY2023 also shows an overall decline of 9.87% year-on-year. The sector’s drop is a concerning indicator for the economy, which is already confronted with a number of issues, including high inflation, a growing current account deficit, and a falling rupee.
He said that the government must take this issue seriously and save the industrial sector from disaster as high production cost is holding it back from growing up to full potential.
He said that the government should encourage exports and export-oriented sectors to have long-term sustainability in the balance of payments. The textile exports have witnessed a massive increase of over 55 percent from $ 12.5 billion in FY 2020 to $19.5 billion in FY 2022 as a direct consequence of the competitive energy tariff.
He appealed to the government for implementation of WACOG based uniform gas tariff across the country which he termed is the only workable solution.
He said that textile industry is the only hope for revival of national economy which is currently jolted by high cost of doing business. Hence, the government must take immediate steps to safeguard national exports as well as employment of the masses, he added.