Karachi: High input costs have been labelled as the reason for the closure of several textile mills which manufactured yard and fabrics said All Pakistan Textile Mills Association (APTMA) Senior Vice Chairman Zahid Mazhar.
In a press release issued by APTMA, Mazhar lamented that due to high input costs, the sector had become unviable and had faced mounting challenges in doing business because of high costs.
He said that the manufacture of yarn and fabric outstripped consumption locally, and govt needs to approve measures for exporting the surplus amount.
Mazhar added that as a result of large-scale closures of manufacturing units would translate into mass unemployment and local consumption of cotton would get impacted as a result if the current trend doesn’t get reversed.
The govt needs to facilitate measures for investment in spinning and weaver sectors, so a large amount of cotton can be converted into yarn, he said. Mazhar commented this would not only help cotton-growers but aid the spinning industry and the whole textile chain, which would translate in benefits to the national economy as a whole.
Mazhar lamented “The textile industry has been hit hard due to the high cost of energy and high tariffs of both gas and electricity are making Pakistan’s exports uncompetitive in the global market,”. “The cost of production of both gas and electricity is up to 30% higher than our regional competitors including Bangladesh, India, and Vietnam.”
He requested PM Abbasi, to direct the relevant authorities for proper implementation of the Rs180b textile package announced at the start of 2017.
The non-implementation of the textile package was hitting and reducing the exports rapidly, Mazhar remarked.
