Imports of textile machinery declined by 22 percent during eight months of current fiscal year due to crisis in the textile sector and high cost of doing business in the country, importers said.
They said that textile industry is facing severe problems including high cost of doing business, which had serious impact on the growth of the sector, as a result of which import of textile machinery has been on decline.
Sources said that the industrialists were not expanding their business due to uncertain situation of industry and had been waiting for a long-term textile policy from the new government.
According to official Federal Bureau of Statistics (FBS) figures, during the July-February of current fiscal year, Pakistan's textile machinery imports amounted to $281.7 million as compared to $359.8 million during the same period of last fiscal year, depicting a decrease of $78.1 million. Textile machinery imports in February 2008 also indicate a decline of 38 percent against February 2007.
In February 2008 textile machinery worth $22.35 million was imported as compared to $36 million of February 2007, which depicts decrease of $13.65 million. "We have submitted our suggestions for the revival of textile industry during the tenure of last government but despite our several requests the government did not announce any package for textile," a textile industrialist said.
He said that new investment in the textile sector has also plunged and now textile industrialists are concentrating on modifying their projects to meet demands of international buyers.
"We are expecting further decline in the imports of textile machinery in the future, if the present government does not announce any relief package for textile industry, besides minimising the cost of doing business," he added. Another factor, which brought about decline in the machinery imports, is the increasing interest rates on loans, he said.
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