Remedial measures to save textile exporters from disaster sought

FAISALABAD - Government should take remedial measures to save the textile exporters from total disaster. This was stated by the Chairman Pakistan Textile exporters Association (PTEA) Muhammad Yousaf, addressing the meeting with Haji Muhammad Akram Ansari, chairman Standing Committee for Textile industry. There has been decline of 4.98 per cent in textile exports in the first quarter of current fiscal.
Textile and industry suffered double jeopardy of gas and electricity rate hike as well as supply shortage during the year. He said that increased cost of production was yet another stumbling block in exports.
The cost of inputs and factors of production like gas, electricity and petroleum products are constantly increasing making our production cost uncompetitive. Resultant effect of this severity was productivity cut and increases in cost of production rendering Pakistan textiles uncompetitive in international markets.
The European Union has imposed 5.8 per cent anti-dumping duty on our textile exports. Denial of market access by Europe is another big hurdle in the way of progress and promotion of Textiles, he stated. The anti-dumping duty is going to be expired on March 2009.
He requested the Government to approach the European countries not to continue this duty on Pakistani made-ups. R and D support facility was suddenly discontinued on 25th June 2008. He demanded the Government to issue instructions to the State Bank of Pakistan to entertain all the claims up to 30th June 2008 and also continue this facility onward.
He said that hike in the interest rate imposed by the State Bank of Pakistan will drive the country's textile exporters out from the international markets. This move will make impossible to achieve the export targets.
He expressed grave concern over 2per cent rise in interest rate as the raise made on three occasions since January this year has neither controlled inflation nor was able to stabilize the exchange parity of rupee with dollar.
He stressed for a quick review of monitory policy declaring in no uncertain words that the percentage discount rate is, too, telling on the business, which has caused closers on a wide scale and may further hit hard to halt the industry.
He was also critical of the impacts of deteriorating Law and Order situation on Textile industry. He said that Government in consultation with all stack holders to take immediate measures to save Textile sector from total collapse.