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Pakistan textile industry needs to balance its value chain
Oct '12
There is a dire need for Pakistan textile industry to eradicate its value chain imbalances to sustain steady exports, All Pakistan Textile Mills Association Group Leader Gohar Ejaz said during a textile entrepreneurs meet. 
He said around Pk Rs. 250 billion investments would be required to remove the existing imbalances in the country’s textile value chain, but the prevailing high interest rates and power outages are impeding new investments.
He said given the current power situation in Pakistan, overseas buyers doubt the ability of Pakistani exporters to timely execute their orders.
According to Mr. Ejaz, the increase in textile exports from Pakistan during 2010-11 was mainly on account of high cotton prices. 
During last fiscal, the country should have exported at least US$ 18 billion worth of textiles, but against this its actual exports came to be just US$ 12.4 billion, mainly due to the Government ignoring the concerns of the textile industry regarding high bank mark-up rate and power crunch.
This year too, the country would have to struggle to sustain its last year’s export levels, he added.
APTMA Chairman Ahsan Bashir said there has been a sharp fall in domestic yarn consumption and yarn exports from Pakistan have risen during the current year.
He said severe power crunch holds back weavers from consuming local produced yarn, due to which the country is compelled to export its quality yarn, instead of domestically adding value to it.

Fibre2fashion News Desk - India

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