According to the newspaper reports, textile exports have recorded a drop of 6.38 percent last month despite availing the facility of Generalized System of Preferences. The reason behind the decline is ostensibly energy crisis and shortage of working capital. Punjab is the worst hit. According to experts, the coming months will be even tougher for the textile industry, especially in Punjab. The country exported textile goods worth $1.175 billion in December against $1.255 billion during the same month of the previous year. The export of value added goods, including cotton cloth, bed wear and towels also showed declining trends. Experts believe that the government should not be held responsible for every wrongdoing as the other stakeholders should also take some responsibility. When it comes to concessions, the business community is at forefront to extract maximum benefits from the government, but when it comes to profit-sharing, many of them refuse to pay taxes.
The leadership, on its part, is doing everything possible under its control to improve the economy, but things are slipping out of its hands, thanks to ill-conceived policies and incapability of the ministerial cadre. Energy is the basic requirement to run the industry, but disproportional distribution of natural gas and electricity shortage have disturbed the economic environment. The issue of gas supply to the textile industry is still lingering on and will definitely result in low production and loss of the government revenue.The government has been caught between the devil and the deep blue sea as if it supplies gas to the industry, it cannot maintain supply for the domestic consumers and if it entertains the domestic consumers, it cannot supply gas to the industrial sector.
In Punjabi, it is said that even a wall can advise. What you have to do is to ask for an advice. There are dozens of countries which passed through the similar situation but they overcame the shortage of energy one way or the other. The condition of Bangladesh is before us which has half of the size of Pakistan’s economy, but more exports and more foreign exchange reserves. Thousands of small and medium size Pakistani businessmen had started their businesses in Bangladesh a decade ago and the government of the time in Pakistan watched it going on as a silent spectator.
If the government still manages to facilitate textile exporters in terms of taxes and duties, and the businessmen ensure full cooperation to the government, than no one can stop recovery process of the Pakistan’s economy.
