New textile policy should be announced without delay: PBIF

KARACHI: Chairman of National Business Group and President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has said that the textile policy has been delayed by three years therefore new policy should be announced without delay and yarn should be provided to the value-added sector at an affordable price so that it remains competitive in the international market.

He said that exports are dipping while imports are swelling which will bring the external sector under pressure.

Exports fell by 4.5 percent during the month of February as compared to the last year from 2.14 billion dollars to 2.044 billion dollars, he said.

Mian Zahid Hussain said that apart from overall exports, the critical textile sector exports also fell by 3.12 percent from 1.27 billion dollars to 1.23 billion dollars which has raised concerns.

He said that fall in exports is due to the increased cost of doing business including energy prices, delay in repayment of refunds and swelling cost of inputs.

He said that the value-added sector has recorded a decline due to the cost of yarn which could have been avoided by allowing import of cotton and yarn from India, the cheapest source of raw material for Pakistan.

If the import of raw material was not allowed from India it will further hit the textile sector therefore a favourable decision should be taken without delay, he warned.

Copyright Business Recorder, 2021