‘Surge in primary input costs to turn textile sector uncompetitive globally’

KARACHI: Towel Manufacturers’ Association of Pakistan on Monday showed concerns about the fresh price hike in petroleum products and feared the surge in primary input costs will turn the country’s textile sector uncompetitive in the world market.

TMA Chairman, Kashif Mehtab Chawla said that the hike in basic manufacturing inputs will have negative effects on Pakistan’s export sector.

“We are worried about the recent hike in petroleum products by 40 percent, gas price by 45 percent, 30 percent in the cost of water and electricity cost by Rs 8 per unit plus time to time imposed fuel adjustment charges”, he said.

The most “significant” inputs have become costlier for the export-oriented sector, which makes the textile sector uncompetitive to its competing countries globally.

It also makes harder for the country’s textile sector to keep up its products prices to the levels what the challenging nations offer to the world buyers, he added.

The frequent rise in the price of these basic inputs ultimately increases the cost of production, making it very difficult for the export industry to offer a good price to their global buyers, he maintained.

He feared that the high inflation stress will pull down the country’s exports, unless an immediate remedy for the ailing economy is sought.

The substandard power grid station along with a low pressure of gas and RLNG to the textile sector will scale back production and delay completion of orders, he said.

He feared that any financial losses to the export sector as a result of a rise in production cost will also deplete chances for earning of foreign exchange and taxes

At present, chairman TMA said that the five zero-rated export sectors are enjoying a comfort of a concessionary power tariff, which should continue in future as well for the economic growth.

Copyright Business Recorder, 2022