Imprudent Govt policy endangers export targets

27 Feb '08

1 min read

Economic policies taken by the Government in tandem are taking a toll on the set export targets for this fiscal year. All Pakistan Textile Mills Association (APTMA) also supports the predicament stating that excessive interest rates combined with serious energy crisis is most likely to cause de-industrialization in the country.

In the period 2004-05, textile industry of Pakistan imported machinery worth US $928 million leading to a growth of 19.9 percent in the manufacturing sector in the same year.

However, the subsequent decision of the Government to reduce import of textile machinery kept the figures standing at $350 million in 2007-08 leading to a feeble growth of 4.74 percent in November last year.

This apart recurrent power cuts and increase in gas tariff have done their best to curtail the export target for 2007-08 by 13.65 percent. The contribution of Pakistan to USA import is just 4 percent of the total.

Increasing cost of production and the poor quality of goods have raised the prices by 12 percent as compared to the regional competitors. This is the primary reason why the country is losing its share in the international textile market.

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