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Textile industry held responsible for its bleak

By ignoring the innovation, the textile industry itself has led to the current situation of declined exports said the Commerce Secretary Mr Mohammad Younas Dagha on Wednesday, 6th September 2017. He gave these remarks after years of criticism between the government and the industry about the continuous falling exports of Pakistan

While speaking to the representatives of the value-added textile association at the PHMA house, Dagha said that “With this attitude, you (the textile industry) cannot compete with Bangladesh and India that have increased their exports despite challenges.” “The government cannot do everything for you.” He further added.

While replaying a question the federal secretary accepted that the government needs to update its policies so that all major crops like cotton, rice, wheat and sugarcane get appropriate share in the total cultivation area. Dagha said that the government is taking all important diplomats and trade representatives in Europe on board to protect Pakistan’s interests in the EU to ensure the country continues to enjoy tax benefits under the scheme. On asking he told that the government has given Rs25-30 billion to the textile exporters in the year ended on June 2017.

He also informed that expected is that, the government may release about Rs70-80 billion in the current fiscal year. Out of these, about two thirds will be in the form of cash while the remaining in other forms like reducing energy tariffs etc.

On the other side the former president of Karachi Chamber of Commerce and Industry Mr Zubair Motiwala said that the part of government is still very important in terms of supporting the jolting exports. He also said that Indian being a major competitor has achieve the success in enhancing their cotton output and it was assisted by the Indian Government and this is something really important to gain success in any industry.

The cotton production is stangnant for more than 25 years, by the year 1991 the cotton production was 11.5 million bales while till the year 2017 it has reduced to 10.7 million bales. Likewise, Pakistan is lagging far behind its main competitors in the region. Pakistan’s total textile exports were $3.67 billion in 1990 that rose to $12.45 billion in 2017, up 239%. However, India’s textile exports rose by 677% from $4.71 billion to $36.63 billion.

It was also said that the government need to provide competent energy tariffs as it has to play a major role in increasing the exports.  Though the government has promised to decrease the energy tariffs but the industry is demanding an immediate action on the said.

In the previous year, the Pakistan exported textile goods worth $12.45 billion, which is 61% of the total exports of $20.44 billion.

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