President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Tanvir Sheikh has claimed that if the textile mills were to close, GDP would drop by 11% while stock market capitalization will decline by 18%. The balance of payments will be badly affected and exports of about US$10.8 billion will decline which would show a total collapse of the external sector, he predicted while expressing great concern over the news that the Planning Commission (PC) has opposed incentives-laden relief package for the textile industry.

Sheikh said that Pakistan was the fourth largest producer and fifth largest exporter of textile products and removal of Pakistani textile from international market could create a worldwide crisis in the textile and clothing industry. Shortage of textile products could lead to the acceleration in the international prices of clothing and apparel products.

He rejected the statement that private sector did not make investment for its up-gradation and that the sector depended only on subsidies and packages without showing any positive outcome. It was on record that the textile sector has invested more than $6 billion on modernization and replacement of old plant and machinery and a major part of the investment was based on equity financing.