Textile producers feel uneasy as exports drop sharply

A fall in exports has left textile producers uneasy with fears of the country's plunging global market share, saying that government discarded the largest sector from its priority index. The textile sector faces huge financial problems in the wake of non-payment of billions of rupees refunds. Textile producers claim that the government has withheld around Rs 250 billion of refunds, citing it as one of the reasons for their financial stress coupled with lower exports.

Chairman, Pakistan Apparel Forum, Muhammad Jawed Bilwani said that government is responsible for textile exports downfall amid excessive delays in refunds of billions of rupees to exporters, the unbridled high cost of utilities and production and the unviable business environment.

He said that the Federal textile ministry functions without a minister and blamed the government for 'delaying tactics' to hold up payment to the tune of Rs 250 billion refunds to cause financial tumult to the exporters. Citing Pakistan Bureau of Statistics, he said that the ailing textile exports suffered a fall of 2.53% in February 2017 on an annual basis. Similarly, with a monthly outlook, textiles exports slumped by 6.48%.

In the textile export group, the knitwear maintains the highest exports share and knitwear remained on top of exports list with exports of $1.56 billion while the readymade garments maintained second highest exports worth $1.49 billion from July 2016 to February 2017. He urged the government to provide enabling and favorable business environment if it really intends to achieve export targets.

 

 
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