The textile products are the main source of foreign exchange earnings, but rising cost of production, energy crisis and lack of interest of the government to boost this sector have made it difficult for the country to compete in the international market. As a result, exports of textile products are declining despite achieving GSP plus status from the European Union. Exports of garments and other household commodities are on the rise in Bangladesh and India is emerging as the biggest challenge not only for Pakistan but also for China because of its business friendly policies, but one crisis ends another crisis starts in Pakistan, leading to the capital flight. Prime Minister Nawaz Sharif is a busy person, but he has to spare time to listen to the businessmen associated with textile industry. Finance Minister Ishaq Dar, who is close associate of the prime minister, should also come forward to listen to the problems of the textile industry and exporters.
According to media reports, the current textile exports from India have reached $41 billion mark and it is expected to become double in five years. The current volume of Pakistani textile exports is $13.3 billion and it is difficult to increase 25 percent by 2020 if the current energy crisis continue to persist. The foreign investment in textile sector is not promising despite the fact that Chinese and several European countries are willing to set textile units in Pakistan. The annual growth of textile exports is recorded at mere two percent against India’s whopping 14 percent which is like to record further increase in the coming years. Experts believe that the prime minister should immediately take notice of the situation before it is too late as declining trend has to be arrested. There is a need to rationalize taxes and tariffs as well as utility bills and an action plan is required to revitalize this sector.
It is unfortunate that the present government, after two and half years in the office, has failed to complete any mega electricity project in the country. The government has already wasted $8100 million in Nandipur power project and it is still inoperative. Billions of rupees are wasted away on non-projective sectors and it seems the government is only trying to complete its tenure without taking any growth oriented step. The industrialists as well as common citizens are made to pay heavy utility bills and the government seems to have no interest in the development of the country. The time has come the prime minister should immediately call a meeting of the textile manufacturers and exporters to save the industry from further damage.
