Value-added textile sector seeks role in SBP initiatives

RECORDER REPORT

KARACHI: Value-added textile sector on Friday expressed concern over lack of its representation in the State Bank of Pakistan's support programme for textile sector boost.

Talking to Business Recorder, Chief Coordinator, Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Ijaz A Khokar said that the SBP governor's recent meeting with the spinning millers has given rise to the concerns of value-added textile sector.

He said the value-added textile sector has never fell short of paying its debts to banks and is providing huge employment besides having a $4 billion export share in the country's total economy through export.

The SBP should not ignore the value-added textile sector in its any support initiative to the entire sector, he said, adding that the spinning millers are not the representatives of all other textile sub-sectors. Khokar said the spinning millers have a small chunk of export shares in the entire textile sectors of $12 billion exports, adding that any SBP initiative will be incomplete without the representation of value-added textile sector.

"If SBP has any programme to boost the textile sector productivity and exports, it should include the major value-added textile sector in its initiatives," said Chief Coordinator, Prgmea.

Prgmea proposes the SBP to take the apparel sector on board to strengthen its initiatives on textile sector to grow, he said, adding that the garment sector needs the greater financial support from the central bank than any other textile sub-sector.

He also lamented over the fall of 40 percent productive of value-added textile sector due to the persistent gas and electricity shortage across the country, saying "the apparel sector needs imperative focus from bank to revive its output."

He said the value-added textile sector pays huge taxes to the government, adding that this sector's share in the country's overall revenue accumulation is also significant.