Textile industry advised to focus on value addition

The Commerce Secretary Younis Dagha advised the textile industry to focus on value addition to compete in the international market and arrest decline in exports. He said the cost of doing business is higher in Pakistan compared to neighbouring countries, but it is not the only hurdle in exports. Lack of value addition is also a major reason (behind falling exports), he said in an address at an event hosted by Pakistan Hosiery Manufacturers and Exporters Association.

“We have not played our role in value addition due to this industrial production remains lower,” Commerce Secretary said Indian and Bangladeshi exporters invest in their industries, while in Pakistan foreign revenue earned from textile exports goes to stocks and real estate sector. The investors should not divert textile money to real estate and other sectors.

Dagha said that the work on combined effluent treatment plant will soon start with the project cost to be borne half each by Provincial and Federal governments.

He said Pakistan Central Cotton Committee has been handed over to the private sector, but there has been no improvement in cotton production since then.

Zubair Motiwala, ex-President of Karachi Chamber of Commerce and Industry said yarn exports fetch $1.26 billion, but after value-addition, this amount can go up to $7.5 billion a year.

Jawed Bilwani, Chairman of Pakistan Apparel Forum said Pakistan’s textile exports are lower than India, Bangladesh and Vietnam, while costs of production, as well as minimum wages, are comparatively higher in the country. He said the country faces a widening trade deficit of more than $32 billion and it would not prosper if exports are not increased. Exports would increase when a level-playing field is provided to the industries.

 

 
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