Textile is the prime earning sector of the country, but persistent energy crisis, rising cost of production and absence of an incentive package from the government are adversely affecting the production and export of textile goods. Pakistan is a major cotton producer and has potential to earn $15 billion annual foreign exchange by exporting value added goods, but absence of sincerity on the official level is the root cause of every woe in this country. The capacity of the textile sector to utilize cotton is likely to reduce from 14 million bales last year to 8.5 million bales this year as thousands of industrial units have restricted their production or have been closed down due to rising cost of doing business. The capacity of the textile sector to convert cotton into value added goods is reducing fast and Pakistan even could not fully utilize the business concessions given by the European Union.
The All Pakistan Textile Mills Association has already expressed concern over the state of affairs and demanded Finance Minister Ishaq Dar to announce a textile package to salvage the industry from collapse. Due to the high cost of doing business, up to eight million textile workers are likely to lose their jobs. The export of yarn and greige fabric worth $3 billion is also in doldrums due to increase in electricity tariff to Rs 15 per unit from Rs 9 per unit, making the textile industry unviable. At a time when Bangladesh and India are capturing most of the world market, the country’s textile industry is running on a reverse gear. According to the association, the export-dependent spindles and looms are falling down one after another and Pakistan is losing its place in the world market.
The government has raised regulatory customs duty on import of Indian cotton yarn and fabric-coarse cloth by 10 percent against the demand of the textile millers to raise the duty up to 25 percent. However, the government should also give the Pakistani missions abroad a wake up call, telling them in black and white that it means business. Japan is $100 billion annual market for import of textile goods, but the officials in the mission are sleeping and there is a need to ask them how much they have created demand for the Pakistani products. Most of the Pakistani foreign officials enjoy hefty salaries and perks but fail to bring any business for the country. The Pakistani businessmen should also change their old habits and diversify their products to grab lion share in the world market.
