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Pressure on spinning, weaving sectors

Pressure on spinning, weaving sectors

According to All Pakistan Textile Mills Association, the cost of doing business has increased and has adversely affected the spinning and weaving sectors in the country.The high cost of electricity and gas has raised the cost of production, making it difficult for the local textile industry to compete in the international market. The cost of both gas and electricity is as high as 30 percent as compared to the regional competitors, Bangladesh, India, and Vietnam. It claims that a large number of textile units involved in the manufacturing of yarn and fabrics have been closed down which not only increased unemployment, but also reduced the consumption of local cotton.The textile sector deserves special incentives to export the surplus amount of yarn and fabrics which the country produces every year. The exports of the country are already falling and uncertainty should have to be removed at the earliest. The association has also asked the government to boost cotton-based industries, including spinning and weaving sectors.This will not only facilitate cotton-growers, but will also boost the whole textile chain and ultimately the national economy. The government should have to revisit its policies for agricultural sector to ensure the achievement of production targets of cash crops.

Earlier at one point of time, the country produced 15 million cotton bales which should be further increased to 20 million bales.Unfortunately, the textile package of Rs180 billion announced by the erstwhile prime minister Nawaz Sharif has yet to be implemented and inordinate delay is affecting exports. The organization has also demanded the government to release refunds under duty drawback claimsfrom July 1, 2017 to June 30, 2018 without any condition to encourage the textile sector. The reports of rising trade deficit are already haunting the national economy which reached an all-time high of $32.5 billion during the last fiscal year.

The point to ponder is that why the exports of Bangladesh, India and Vietnam are increasing if there is slump in the international market. It means the flaws are in the country’s textile policy and the international market is ready to absorb textile surplus from Pakistan. When exports recorded the figure as low as $20.45 billion, the imports reached $53 billion mark during the last fiscal year. Unless a comprehensive policies is devised, there is little chances for improvement in the situation.