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.