Home / Knowledge / News / Textiles / Only good government policies can help revive textile sector

Only good government policies can help revive textile sector

01
May '09
The Pakistan textile and garment industry went through the best period of its history in the 80's, 90's and the first half of 2000. But a host of crisis like gas and electricity shortages, rising financial costs and now the global economic recession has crippled the sector.

Value of exports in the period July-January of the current fiscal year have fallen by nearly 6 percent, but it is only the resilience and survival instinct of the textile industry that has stood it in good stead, otherwise export figures could have been far more worse.

The Pakistani Government has been talking about a new textile policy which will address all relevant issues, but it is still to see the light of the day and now the release of the new policy paper has been postponed to June 2009.

Pakistan is considered a major raw cotton producer in the country, but cotton production in the country has been stagnant at 12 million bales (1 bale=170 kg) since the last few years, while consumption of cotton has increased considerably in the same period.

Exports of cotton yarn in the period July-January fell by a considerable 15 percent, that of woven garments by 12 percent, bed-linen by 10 percent and knitted garments by 3 percent. The only saving grace was exports of cotton fabrics and towels which registered positive growth.

Even before the recessionary trends unfolded, the sector was plagued by massive and unscheduled electric power cuts which led to huge production losses. To make it worse, supply of gas also fell short of the demands of the industry.

The sector was also bearing very high financial costs in the form of lofty interest rates and also high mark-ups. It also faced labour unrest in 2008. If all this was not enough came along the global recessionary trends to break the back of the sector.

The government though also has done its bit. It has been paying a R&D subsidy, though payments have stopped coming in since July 2008. The apex bank also financed imports of machinery at concessional terms.

But is this enough! Is a question asked by most experts, for a sector which contributes nearly 60 percent to overall exports revenues and is also the highest employment generator by providing direct and indirect employment to around 2.5 million people?

Fibre2fashion News Desk - India


Must ReadView All

Prime Minister Sheikh Hasina. Bayazid Akter | Dreamstime.com

Textiles | On 1st Dec 2021

PM Hasina urges global investors to invest in Bangladesh

Prime Minister Sheikh Hasina recently urged investors from across the ...

Pic: EuroCham

Textiles | On 1st Dec 2021

EU asks Vietnam to improve policies for effective EVFTA implementation

Up to 35 per cent of European business leaders see administrative...

Marta Ortega at the general meeting of shareholders of Inditex on July 16, 2019. Pic: Iago Lopez | Dreamstime.com

Retail | On 30th Nov 2021

Inditex appoints Marta Ortega as chairwoman, Oscar Garcia as CEO

The Board of Directors of Spanish clothing company Inditex has...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Instagram & fashion will go a long way together

Textile Industry, Head honchos

Textile Industry
Head honchos

Ensured payment of fee was least concern for students

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

Shambhu Nath Jha,

Shambhu Nath Jha

Leading research and consulting firm Fact.MR recently launched a report on ...

Raiyan Islam,

Raiyan Islam

Founded in 1981 by Sayeeful Islam, Concorde Garments Group is a market...

Chendhuran Sundar,

Chendhuran Sundar

Headquartered at Singapore, Crocodile is a global fashion and lifestyle...

Sachin Pendharkar, Dieffenbacher India Pvt Ltd

Sachin Pendharkar
Dieffenbacher India Pvt Ltd

Germany-based Dieffenbacher Group is a producer of high-quality composites ...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Bav Tailor, Label Bav Tailor

Bav Tailor
Label Bav Tailor

Born in London and Indian by origin, <b>Bav Tailor </b>is the Founder of...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Archana Jaju, Label Archana Jaju

Archana Jaju
Label Archana Jaju

<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search