KARACHI: The textile millers have revealed that the six major sub-sectors of textile industry have closed down due to energy crisis, high cost of doing business and inconsistency in government policies.
All-Pakistan Textile Mills Association Chairman Tariq Saud, in a statement, said that around 30 per cent or $3,467 million worth of the textile industry’s production capacity is not operating which was having a direct negative impact on growth of exports.
Due to underperformance of the textile industry, he said, Pakistan’s share in the global market also decreased from 2.2 per cent to 1.8pc during 2006-13, whereas market share of regional competitors increased by 75pc from 1.9pc to 3.3pc.
He added that if situation remains the same, it is apprehended that Pakistan would be out of the list of exporting countries of textile items. He said domestic market is being flooded with smuggled, subsidised and dumped imports of textile clothing.
The customs duty on import of cotton yarn in Pakistan is 5pc whereas India has imposed 28pc duty which makes export of cotton yarn to India unviable. As a result of this, he said a number of textile mills have closed down their operations on failing to compete with Indian textile industry.
