Depreciating Euro causes steep fall in textile exports

While expressing deep and serious concerns over the alarming fall of 16 per cent in textiles and clothing exports in the month of March due to depreciating Euro, the central body of APTMA has constituted a task force to deliberate upon the gravity of situation, which is squeezing fast the viability of the industry by and large and impacting its exports negatively.
The APTMA task force on “sustainability and way forward” has a strong representation of all sub-sectors including spinning, weaving, processing, home textiles, knitwear, woven garments, towels and synthetic textile.
The central body has given mandate to the central chairman APTMA S M Tanveer along with Gohar Ejaz as co-chairman of the task force to hold deliberations on the factors behind the prevailing alarming situation and suggest the way forward in terms of viability and sustainability of the industry.
APTMA spokesman said the task force would formulate a strategy document for the restoration of viability of the textile industry and to undertake investment initiatives for achieving double-digit growth of textile industry.
According to him, the economic managers and concerned ministries would be approached to secure enabling environment for sustainability and growth in domestic as well as the global market place.  
He said the mandate of the task force encompasses immediate reduction in cost of doing business and to devise a methodology for effective zero rating regime for export-oriented industry. Furthermore, he said, the task force would also deliberate on various incidents of taxes, cess, surcharges and inefficiencies and disadvantages of the system burdening the industry at around five to six per cent of the sales value for spinning, weaving and processing mills, making basic textiles unviable for value added exports. All these three sub-sectors are important part of the value chain, energy dependent, operate 24/7 and thus are more exposed to inefficiencies of the system.
He said the government has only two options to save the textile industry. It would either have to reduce the cost of doing business of the export-oriented textile industry or to bring rupee at its realistic value. The first meeting of the task force has been scheduled for 28th April, 2015.

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