The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Central Chairman Mubashar Naseer Butt has warned the government of long holidays on the coming Eid-ul-Azha, as the move would hurt the business.
He said it would cause loss of billions of rupees in exports, amidst continuously declining textile exports. Mubashar Butt said that keeping in the view of the current economic situation of the country the government should remain alert, adopting a pragmatic approach which suits the national interest. The PRGMEA Central Chairman said that due to closure of transport there will be problem to transfer the finished goods from one to other places, as the long holidays spell would cut off Pakistan commercially from the world, causing a loss of billions of rupees in external trade.
Due to long holidays during Eid-ul-Azha together with weekly holidays, the country will remain cut off from the rest of the world, having halted all kinds of trade and exports with foreign countries. He regretted that due to past long and unnecessary holidays on previous Eids the country has had to bear an irreparable monetary loss.
Mubashar Butt said if the authorities announce weeklong holidays the country would remain disconnected from the world during this period, and it will cost the economy.
He, quoting the latest figures, stated that the country’s textile exports were down by around 15 percent during the first eleven months (July-May) of the current fiscal year 2022-23 to $15 billion as compared to $17 billion during the same period of last year. He said that the textile group exports witnessed a decline of 19.57 percent in May 2023 on a year-on-year basis and remained at $1.32 billion when compared to $1.64 billion during the same month of last year. In this worst economic crisis when we are running short of foreign exchange reserves amidst constant plunge in textile exports this move will make the situation worse, as the exporters would not be able to complete the orders.
Moreover, the long closure of banks would lead to delays in the opening of LCs and making payments. The impact of the banking sector shutdown would also create problems for not only the trade and industry but also for the common man.
The ATM system is not efficient and it might aggravate the liquidity problem, he said.
He urged the policymakers to refrain from allowing such a long spell of holidays, which the nation cannot afford both economically and socially.
Readymade garment association PRGMEA resents long holidays on Eid-ul-Azha
