PTEA expresses concern over decline in textile exports

Pakistan Textile Exporters Association (PTEA) expressed grave concern over 14 percent decline in exports of textiles in last month. Achieving export target appears to be a Herculean task. This was opined by Chairman Pakistan Textile Exporters Association Rana Arif Tauseef talking to newsmen here today.
Voicing apprehensions on vulnerability of national exports, Rana Arif pointed out that textile exported goods worth US$1.02 billion in October as against exports of US$1.18 billion during last year showing a hectic decline of 13.51 percent. Export volume of value-added items also showing down ward trend. In October, export of bed wear declined by 28 percent, knitwear 26 percent, towels 12 percent and garments 14 percent. If this trend continues in the remaining months of the financial year then the export target seems to be a far cry, it was contended.
He said that factors like energy outages, high interest rates, and law-and-order problems are foiling all efforts to improve productivity and exports and government should take urgent measures to resolve these issues for improving exports. Pakistan is in dire need of enhancing exports to provide some cushion to its sagging economy.
However, due to these factors, exports are suffering. Arif said that severe shortage of gas has almost devastated the manufacturing and industrial sectors in the entire country rendering export units dysfunctional and this situation is resulting in the loss of production and cancellation of export orders. Other big factor hurting business expansion and exports is the high financial cost due to high interest rate, he added. PTEA Chairman forewarned the Government of impending down sliding in the wake of drastic load shedding of gas and arbitrary and discriminatory closure of industry resulting in sharp decrease in productivity and job losses.
Intermittent increase in electricity and gas tariff and protective and regulatory duties on raw material and inputs have further burdened the cost of production rendering Pakistani textiles uncompetitive in international markets he added, regional rivals are creeping into our traditional markets throwing the Pakistani textiles out, he warned. Rana Arif said that though the government has announced incentives to boost textile exports, however, exporters' past record shows that when it comes to the implementation, the results mostly prove quite contrary to claims.