Approximately seven million people in the textile and textile-related industries have been laid off due to low exports and the government’s failure to end the economic crisis.
Representatives of textile associations said at a joint press conference on Monday said no policies exist at the moment to address issues of the textile producers and exporters. Many units have closed and put the industry on the verge of closure. Several others are planning to close or shift production overseas, they claimed.
The industry representatives complained that textile mills are being denied access to raw materials and accessories, including letters of credit worth as little as $5,000, putting at risk export orders worth $500,000 per consignment.
They said the nationwide bottleneck on manufacturing materials is disrupting production and causing the cancellation of export orders. while the detaining of various consignments significantly increased costs.
Dollar-earning export sector is prioritized below the dollar-spending sectors, demonstrating policymakers’ poor judgment. Exporters who bring dollars into the country have been placed third on the priority list for raw material imports. Wheat and edible oil are the first items on the priority list, followed by energy-related imports, they added.
They further remarked that the government’s performance over the last nine months has been poor, with two finance ministers failing to resolve the ongoing economic crisis. They pointed out that neither the prime minister nor the finance minister had met with the exporters.
The industry reps warned that the industrial sector cannot function under such extreme conditions because concerns of sovereign default have been increasing while “the government’s finance and economic team appears to be asleep at the wheel”. They said the country is in the middle of a dollar crisis and the economy is facing an emergency-like situation, which can only be overcome by promoting exports.
The conference was addressed by senior association reps including the coordinator of the Value-Added Textile Forum Muhammad Jawed Bilwani, Chairman Pakistan Hosiery Manufacturers and Exporters Association (PHMEA) Muhammad Babar Khan, Zonal Chairman PHMEA Khizer Mehboob, Chairman Pakistan Knitwear and Sweater Exporters Association Rafiq Godil and former chairman Pakistan Cloth Merchants Association Abdul Samad.
Via Dawn
