PTEA for taking steps to save exports decline

FAISALABAD - Pakistan Textile Exporters Association (PTEA) has expressed deep concern over drop of 6.38 percent in textile exports in December 2014 despite the availability of GSP Plus benefit. Unprecedented energy shortage and lack of working capital are the prime reasons behind the substantial drop in exports.
In a statement here on Friday, Sohail Pasha, Chairman and Rizwan Riaz, Vice Chairman of the Association apprehended that export numbers in coming months might be even worse as the textile industry in Punjab has been deprived of its basic fuel and working capital and textile exports witnessed 6.38 percent decline in December over same month of outgoing fiscal. Giving details, they said that country exported textile goods worth $1.175 billion in December as against exports of $1.255 billion in same month of previous year showing a hectic decline of 6.38pc. Export of value added items also witnessed negative growth as cotton cloth down by 13.62pc, bed wear 11.54pc towels 11.39pc and Made ups 10.04pc. Slow poisoning of economy is being precipitated due to the non serious attitude of the government, as exports of the country are heading towards collapse after visible decline, they said.
Energy shortage and liquidity crunch are the prime causes of decline in exports as major part of production capacity of textile industry is dysfunctional due to short supply of electricity and gas. Drop in exports would have serious consequences for the economy but Government is not addressing the reasons behind the drop in exports, they deplored. Policymakers are not serious in resolving gas supply issue of the textile industry. Instead the available gas is being supplied to the unproductive sectors, causing a loss in terms of foreign exchange, they argued. Situation is becoming unbearable for industry as constant inefficiency is plaguing the viability of production units. Even, the GSP plus facility has not brought any desired results and efforts have also gone wasted as we are unable to produce export surplus due to massive energy constraints, they said.
Acute energy shortage has chucked the Punjab industry in a bottomless crisis and due to this jobs of thousands of workers are in danger as closure of industry has been started.
PTEA Chairman Sohail Pasha was of the view that non-availability of energy and stuck up liquidity on drawbacks and refunds have played a vital role in the lower growth and exports of Pakistan textile industry. Drop in exports and the health of textile sector is being taken up by PTEA at various forums but the Government does not understand the gravity of the situation and no steps are being taken to ratify the situation.
 Now is the time that the repair has to be made otherwise decline in exports would put irreparable loss to economy. He criticised the policies, which had failed to encourage investment in the textile sector during last five years whereas competitors made huge investments due to the positive and business friendly environment provided by their governments. Rivals, taking advantage of the situation, are creeping into our traditional markets throwing Pakistani textiles out.
Less increase in exports than non-GSP Plus India is not a good omen for Pakistan, as India’s extraordinary surge in exports reveals the preparedness of the Indians to deal with the GSP Plus advantage of Pakistan. It also shows the non-professional approach of the state machinery dealing with textiles, he said.

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