LAHORE: All Pakistan Textile Mills Association (APTMA) central Chairman Aamir Fayyaz has said that the export data for November does not reflect the ground realities of the textile industry, which is plagued with high cost of doing business all across the value chain.
Commenting on November’s export data released by the Federal Bureau of Statistics, which showed a rise in exports, he said the comparison of this period has been made with the corresponding highly lean period of November 2015.
Further, he said, an increase in value of textile exports is mainly due to the increase in the commodity prices worldwide. Comparison of exports for November 2016 against November 2015 is a meaningless exercise, especially when there is a constant drop in exports from July till date, he added. He said the exports for November 2016 in quantitative terms are on the declining side, for example, fabric exports registered a decline of 23%, which proves industry point of view.
“It also suggests that substantial capacity to produce exportable surplus is either fully or partially closed due to high energy cost and other factors concerning cost of doing business.”
He said only a comprehensive textile package would be the answer to avert fall in exports both in quantity and to achieve sizeable growth.
Meanwhile, the Aptma official has also criticised individuals against the announcement of the textile package on the basis of the November 2016 exports data.
He said such a myopic approach does not serve national interest and all such individuals should stop misguiding the policymakers through incorrect statements.
“These elements are actually working against the interest of the country,” he added.
He said only a competitive environment would attract the investors to undertake investment initiatives to increase exports and create jobs in the industry.
“There is an urgent need of energy cost equalisation across the country and of bringing down the high cost of doing business to ensure viability and growth of industry,” he added. He said the high cost of doing business has already decreased production capacity in Punjab, worth $3.5 billion, where 70% of the total textile industry is located at present.
Aptma urged the prime minister to announce a textile package and personally spearhead investment and export growth meetings.
Courtesy : Express Tribune