Page 9 - July-August-2017

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as the shortage of cotton-- 3.8 million bales, 4% amount of attention to it” he added.
customs duty and 5% sales tax has been
News re-imposed. Further mentioned were the energy With an emphasis, he said that the earliest revival, as
well as the growth of the textile industry, is a must to
costs that are more than 30% of the overall
conversion cost in weaving, spinning and the
better and stable competitor in the market. He also
processing industry. The electricity tariff is 50% navigate the jolting textile industry towards being a
higher than the regional competitors while that of the highlighted the terrifying state of affairs in the industry
gas tariff is 100%. Another important highlighted by saying that the production capacity of the textile
Pakistan lost 23pc UFG, GIDC and cost of supply. across the value chain. Textile exports have declined by
point here was the various add-ons including the
industry of Pakistan has been impaired by 35%
11%, its global market share has reduced by 23%,
investment in the sector has dropped by 17% and 30%
While talking to the media the Chairman of APTMA,
shares in world market Aamir Fayyaz demanded for the zero rating of the of the unemployment has already been redundant.
textile raw materials, reductions in cost of doing
business, resolution of the liquidity issues, and filling
For seeking revival and growth of the textile industry
and to enable the industry to increase its production,
up the policy implementations dividing immediately
exports and employment in broader economic
to ensure restoration of the industry’s viability and
APTMA revival of the export potential of the country. interest, Mr Fayyaz demanded complete realisation
of Rs 180 billion textile package announced by the
Mr Fayyaz further said that the high cost of doing
PM in the starting month of 2017. Duty/tax-free
import of cotton and polyester staple fibre, liquidation
business, shortage of liquidity, the ongoing
policy-implementation divide and realization of only
all electricity surcharges, the supply of RLNG at
Rs03 billion out of Rs180 billion textile packages are of all outstanding refunds of sales tax, withdrawal of
In the massive blow to exports, Pakistan had regional competitors are performing better than a few major concerns of the industry at present. “The Rs400/MMBTU and strengthening of domestic
lost a prominent percentage of shares for Pakistan. It showed how the Vietnam has been viability of the textile industry has been eroded fast commerce through tariff/non-affiliated measures to
textile exports in the global market. With a loss ranked first by showing a growth of about but the government was not able to pay the required counter informal trade and dumped imports.
of about 23%, from 2.2% to 1.7%, the situation 107% in textile and clothing exports, followed
is raising questions for the trade and economic by Bangladesh with the growth of 64% in the
policy makers and the government of Pakistan. exports. Likewise, India has shown a growth of
It also unfolds the latest arrangement on the 31% and Sri Lanka with 20% growth whereas;
restoration of sustainability and growth of textile Pakistan is still in the red zone with a negative
industry, prepared by APTMA. growth of 11%.

“The investment in textile and clothing APTMA also pointed out the government by
massively declined by 44% in 2016-17 on saying that the bilateral trade agreements
account of which, the country’s textile meaning by that free trade agreement (FTAs)
production capacity has got impaired by finalized with various countries is faulty and
30-35% due to which 150 industrial units have failed to provide the level playing field to the
become non-functional resulting in 30% real stake holders, and export- oriented
unemployment. More shockingly, the textile industrial sector. The defamed law and order
industry of Pakistan lost 15 percent situations in Pakistan had also lead to the
technological edge advantage over limited militant activities and stopping the
competitors.” investors to visit Pakistan. Though in recent
years the situations are improved there is a
With the non-performance of the textile sector need to take steps at the governmental level to
of Pakistan, due to the highest cost of doing change the perception of Pakistan around the
business in the region, Pakistan is facing a very world so that more buyers and investors can
high trade deficit of $35.609 billion and the visit Pakistan.
external deficit has swelled to $16.305 billion. In
this manner, APTMA, a number of times have The presentation also revealed that the PM
discussed and clearly mentioned how the export lead growth package has gone reversed