Free market mechanism boosted textile exports: APTMA

The APTMA pursued free market mechanism, put in place by the government last November, has not only helped transferring Rs 350 billion to the cotton growers but also given boost to textile exports by 47 percent during first 10 months of current fiscal year. It is highly likely that the textile exports would touch a record level of $14 billion by the end of current fiscal year.
Chairman APTMA Gohar Ejaz is of the strong impression that Pakistan textile has succeeded because of the free market mechanism, earning a win-win situation for all stakeholders including farmers, spinners and value added exporters. Interestingly, Pakistan textile industry is consolidating its strength because of following the path of free market mechanism whereas various interventions by the Indian government in connivance with its shortsighted textile industry at the cost of poor cotton farmers have hit the stakeholders hard there.
The leading Indian newspapers have reported that the Indian farmers are committing suicides in protest against non-availability of free market mechanism. It may be noted that the Indian government had restricted cotton exports to 5.5 million bales in current season to benefit the millers. Now the high priced cotton and yarn stocks in the hands of concerned stakeholders in India are mired by the global free fall of cotton. The Indian press reports further suggests that the Indian textile industry is set to close its production capacities by 33 percent from next Monday.
Talking to this scribe, Chairman APTMA Gohar Ejaz said the APTMA had protected national interest, and not the vested interest, by pressing the government for free market mechanism last year. He said the APTMA's stance proved genuine despite all criticism and opposition from the quarters concerned. Pakistan textile exports posted 47 percent increase in value terms in April 2011. Whereas, the knitwear exports registered 33 percent increase, readymade garments 50 percent, cotton cloth 28 percent, art, silk and synthetic textile 39 percent in quantity terms during April 2011.