Islamabad, July 21, 2012 (PPI-OT): Textile industry is the only hope for the revival of country’s economy which is currently jolted by the high cost of energy and prolonged power outages.
It was stated by Yassar Sakhi Butt, President Islamabad Chamber of Commerce and Industry while commenting on the decline of textile exports by 10.38 percent in FY11-12.
ICCI President was responding to the released figures of the Pakistan Bureau of Statistics which shows that textile sectors cumulative exports have declined to $12.35 billion against $13.78 billion in the same period last year. He said that energy shortage was the prime cause of decline in exports because 40 percent of production capacity of textile industry is dysfunctional due to short supply of electricity and gas.
He said that Pakistan is one of the largest cotton-producing countries of the world that employs the largest number of human resource. Government should immediately review the situation and provide uninterrupted power supply to textile industry as country has already missed the export target of $26 billion and hardly reach the mark of $23.64 billion at the end of FY2011-12, he maintained.
Yassar Sakhi Butt said that the textile industry has been facing strong competition at international markets from regional competitors where electricity cost is lower and manufacturers are also enjoying special exemption. He urged the Government to direct the concerned authorities to provide smooth electricity and gas supply to the textile industry in the larger interest of the industry and textile exports.
ICCI President was of the view that another reason for high production cost of textile is the ever increasing interest rate, double digit inflation and continuous devaluation of rupee. It is becoming unviable for the textile manufacturers to continue with their operations under the unbearable electricity cost and continuous power outages, he added.
Yassar Sakhi Butt said that textile and garment sector is the backbone of our national economy that needs to be further strengthened by adopting investor-friendly policies and ensuring unremitting power supply to export oriented industries.
ICCI President called upon the Government to take serious steps to endure the textile industry and focus should also be on the value addition as textile sector need to enhance quality and production capabilities.
For more information, contact:
Islamabad Chamber of Commerce and Industry
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1,
Tel: +9251 225 0526 and 225 3145
Fax: +9251 225 2950