LAHORE: The local market on Tuesday remained steady and the trading volume remained low. Cotton Analyst Naseem Usman told that rate of cotton in Punjab and Sindh is in between Rs 21,000 to Rs 22,000 per maund. He also told that spot rate witnessed a decrease of Rs 1,500 per maund in three days.
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.
Newly appointed Trade Officers of Pakistan have sought assistance and cooperation from the All Pakistan Textile Mills Association (APTMA) in upsurge of textile exports and to explore investment potential in textile sector.
A 14-member delegation of officers selected from different occupational groups for posting in Pakistani missions abroad as Consul Generals, Ministers, Consular and attachés visited APTMA Lahore office on Monday.
Chairman APTMA Abdul Rahim Nasir, Chairman APTMA Northern Zone Hamid Zaman, Senior Vice Chairman APTMA Kamran Arshad and Secretary General APTMA North, Raza Baqir welcomed the delegation.
Exchanging views during their visit to the APTMA, Trade & Investment Officers underlined the need to hold regular online meetings with APTMA members so that they could jointly explore trade and investment opportunities and create strong linkages between the business communities of Pakistan and the host countries.
Speaking on the occasion, Chairman APTMA Abdul Rahim Nasir said the textile sector alone represents 46% of total manufacturing sector and around 40% of total labor force. He informed that textile exports of US$ 15.4 billion registered in FY21 are expected to fetch $20 billion by close of the current financial year. He added that performance of textile exports during May this year was highly recommendable recording upsurge of 50% over the last year and it was encouraging to note that the value added sector in textile has shown unprecedented growth.
Rahim said the trade and investment officers serving the country’s missions in over 50 countries can play an important role to boost up exports. He suggested that these officers should participate in all exhibitions and prepare reports for the trade associations and general exporters to help explore new markets and exploit trade opportunities.
Talking on this occasion, Hamid Zaman, Chairman APTMA North said that Trade Officers should act vibrantly and explore all the major markets and commercial centres in the countries of their posting to help augment exports. He further added that the trade missions abroad should facilitate the foreign buyers and investors during visas processing so that they could make business trips to Pakistan easily. He stressed on setting up of trade facilitation centres across the global markets.
While referring to the preferential custom duties and tariffs being granted to our competitors, he said that trade officers must lobby in their countries of posting for preferential customs duties and tariffs for Pakistan so that more and more goods could be sent to all export destinations from Pakistan.
Meanwhile, for the first time in the history of the country’s textile industry, India is witnessing import of cotton yarn to ensure seamless supply of the important raw-material to weavers and textile mills. The imported cotton yarn is nearly Rs 30 (per kg) cheaper than the yarn being sold by local spinners.
Speaking to FE, Atul Ganatra, president, Cotton Association of India, claimed, “Although India has imported cotton many times in the past, this is the first time that cotton yarn traders and brokers have decided to import cotton yarn. This is unprecedented.”
MCX Gold may trade sideways to up this week, US FOMC meet eyed; economic growth worries fuel safe-haven buying “Nearly 200 containers (4,000 tonnes) of 40 counts of combed-carded compact cotton yarn have arrived at Indian ports from Vietnam, Indonesia and Taiwan,” Ganatra said.
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 Spot Rate remained unchanged at Rs 21,000 per maund. The rate of Polyester Fiber was increased by Rs 3 and was available at Rs 310 per kg.
Copyright Business Recorder, 2022
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