LAHORE: High cost of doing business and continuously reduction in number of power looms and export may decrease consumption of cotton to 8.5 million bales this year from 14 million bales.
This was revealed by the industry stakeholders, while talking to media. They said, “The production of only 25 percent spindles, converted to garments and made-ups, could survive in case the high cost of doing business kept hurting the sector constantly,” adding that 6 to 8 million textile workers would be jobless with permanent closure of the export-dependent spindles and looms.
They said that 400,000 per month bales were being consumed by the textile industry to produce 60,000 tons but a substantial drop in the consumption of cotton bales has recently been observed.
“The utilisation of cotton bales is likely to reduce to 8.5 bales this year in actual in case the government delayed the decision of reducing cost of doing business,” they pointed out.
The All Pakistan Textile Mills Association (APTMA) spokesman said the high cost of doing business, particularly a raise in the electricity tariff to Rs 15 per unit, including has put the upside down of the textile industry altogether. Furthermore, the imposition of system inefficiencies on the textile industry has added fuel to the fire and the industry was facing a rob Peter to pay Paul like situation on ground. Since the textile industry in Pakistan is no more cost effective therefore the international market is not responding to its exportable production, he asserted.
