Country needs to import 5m cotton bales during current fiscal year: PBF

LAHORE: Pakistan Businesses Forum (PBF) said country imported 3 million cotton bales last year and needs to import at least 5 million bales during the current fiscal year due to damage to the crop by recent floods. Current estimates of losses to the cotton crop due to floods are 3.5 million bales, accounting for 36 percent of the expected yield this year.

Chairman PBF Punjab, Muhammad Naseer Malik said the government has decided to reverse the competitive power rates for the industries. In protest, textile millers have decided to shut down all textile industries in the country from Saturday onwards. 1,600 textile mills have already been closed down. The closure of the textile industry will cause a huge loss to the domestic exports. Five million employees will lose their jobs and 30 million people will be affected due to the closure of textile industries

He said increasing exports is very important and the only way out for the economy of the country. The government must provide electricity and gas at competitive rates to the textile industry. It should also ensure continuous power and gas supply to the textile industry.

“The matter requires urgent resolution as the delayed imports are translating into huge financial losses to not only these importers but also the national economy in terms of lost production and exports.”

However the State Bank of Pakistan is stating that imports will be released under Chapter 84-85 only to direct exporters and indirect exporters are neglected which is a matter of grave concern as indirect exporters provide the intermediate goods to exporters. Without these intermediate goods exports are now suffering and will drop significantly over time.

PBF Central Punjab, Vice Chairman Waheed Khaliq Raamay said almost 50 to 75 processing mills closed and almost 10 printing mills are closed in Faisalabad region. Similarly fifty thousand looms mills closed due to high price of electricity.

He said mostly factories received bills at Rs 55 per unit which is unbearable. Almost 300 to 350 embroidery machines were closed till date.

Copyright Business Recorder, 2022