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Turbulence rocks textile sector
Aug '09
The Pakistan textile and apparel sector is traveling through turbulent times, what with global orders in hand for the coming Christmas season falling by as much as 30-40 percent, as buyers fear delay in dispatch of their orders.

The buyers are skeptical on account of the turbulence in Pakistan which has been hit by terrorist attacks and political uncertainty and add to that is persistent shortage of electricity and gas, all of which are hampering production activities.

The effect has been crippling on the small powerloom units which have closed down in hundreds, since power cuts extend to between 14-18 hours per day making it unviable to run the factories efficiently.

This has led to job losses in hundreds of thousands as small units which cannot afford to set up electric generating sets, have no other option but to close down their units rather than face operating losses on a daily basis.

The slowdown in the global markets has also affected exports from the sector, which contributes nearly 50 percent to the basket of exports from the country. Shipments from the industry have fallen by nearly 10 percent in the previous fiscal.

Fibre2fashion News Desk - India

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