Drooping textile exports & squeezing margins concerns LCCI
May 27, 2008 - Pakistan
In the wake of declining textile exports, Lahore Chamber of Commerce and Industry (LCCI) have expressed concerns urging Pakistani Government to adopt both short term and long term methodologies for cutting back the cost of production.
In an exclusive interview with Fibre2fashion
, Mr Mohammad Ali Mian, acting President of LCCI stated, “Textile is one of the most value-added and export-oriented sectors in Pakistan which accounts for more than 65 percent of total exports of the country. As many as 450 textile processing units are engaged in dyeing, bleaching, printing and processing of textile fabrics and therefore, considering the present degrading condition, the industry requires immediate attention of the Government.”
Mr Mohammad opined, “Even the slightest enhancement in the cost of production at this critical juncture would spell doom and oust exporters from the international export market. Besides, it would also deprive the exchequer of valuable foreign exchange of revenues worth billions of dollars and throwing thousands of wage earners out of job.”
Akbar Sheikh, Chairman of All Pakistan Textile Mills Association (APTMA
) also shared a similar view and informed the LCCI President Mohammad Ali Mian that rising interest rates, wage increases and high cost of doing business is taking the textile industry towards impractical operations and any addition to input cost would squeeze the margin of the industry.
Sliding exports is already taking a toll on the economic growth of Pakistan which is likely to remain below the revised target of 6 percent for 2007-08 fiscal year, due to lower manufacturing growth and farm output.
A suggestion has been made by the Chamber according to which the Government must introduce business-friendly policies in the upcoming budget that will give a boost to domestic production and create a surplus of exportable goods.