ICCI concerned over textile exports decline

ISLAMABAD - ICCI on Saturday showed serious concerns over the textile’s exports decline during the previous financial year 2011-2012.
Yassar Sakhi Butt, President Islamabad Chamber of Commerce and Industry, said in a statement that textile industry is the only hope for the revival of country’s economy, which is currently jolted by the high cost of energy and prolonged power outages.  He was responding to the released figures of the Pakistan Bureau of Statistics, which showed that textile sectors cumulative exports have declined to $12.35 billion against $13.78 billion in the same period last year. He said that energy shortage was the prime cause of decline in exports because 40 percent of production capacity of textile industry is dysfunctional due to short supply of electricity and gas. 
He said that Pakistan is one of the largest cotton-producing countries of the world that employs the largest number of human resource. Government should immediately review the situation and provide uninterrupted power supply to textile industry, as the country has already missed the export target of $26 billion and hardly reach the mark of $23.64 billion at the end of FY2011-12, he maintained.
Yassar said that the textile industry has been facing strong competition at international markets from regional competitors where electricity cost is lower and manufacturers are also enjoying special exemption. He urged the govt to direct the concerned authorities to provide smooth electricity and gas supply to the textile industry in the larger interest of the industry.

 and textile exports.
ICCI President was of the view that another reason for high production cost of textile is the ever-increasing interest rate, double-digit inflation and continuous devaluation of rupee. It is becoming unviable for the textile manufacturers to continue with their operations under the unbearable electricity cost and continuous power outages, he added.
Yassar Sakhi Butt said that textile and garment sector is the backbone of our national economy that needs to be further strengthened by adopting investor-friendly policies and ensuring unremitting power supply to export oriented industries.
ICCI president called upon the government to take serious steps to endure the textile industry and focus should also be on the value addition, as textile sector need to enhance quality and production capabilities.

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