MUMBAI(Commoditiescontrol)- The textile industry of Pakistan witnessed a depressed export performance in 2016 as it fell further by $600 million due to high cost of business operation , said All Pakistan Textile Mills Association (APTMA) Chairman Aamir Fayyaz in a statement. Total merchandise exports are expected to fall by $1.2 billion in the current fiscal year, it added.
The textile industry was operating 10 percent expensive compared to its international competitors and the adding woes of paying a higher energy cost of 4 cents/per kilowatt since 2013, were negatively impacting the growth of textile industry in the country.
Since major textile manufacturing units are in Punjab, the high energy cost has led to closure of at least 70 textile mills in the last six months.
Further, the country is likely to be dependent on imported cotton and man made fibre because of an acute shortfall of domestic cotton production at 10.54 million bales from the estimated target of nearly 14.1 million bales.
Fayyaz said the presumptive tax regime in the country is an additional burden on the organised segment of the textile industry as it cannot be passed on to international buyers.
He said that free trade agreements (FTAs) are posing serious challenge to the domestic industry. “Manufacturing has been replaced with trading because of the poor confidence of investors,” he added.
Pakistan’s currency is overvalued by 10pc in dollar terms, which is inhibiting exports, he noted.
(By Commoditiescontrol Bureau; +91-22-40015534)