Interviews
'I do not see any positive impact of budget' – Mr Lateef, Texlynx
30 Jun '09
2 min read
The Budget for the next fiscal year has been declared just a few days back. Looking at the budgetary details, the textile and apparel sector which is the single largest contributor to exports from the country seems to have been given a rough deal. The textile industry in Pakistan has faced each and every turmoil, whether it is electricity shortages, gas shortages, high bank interest rates and many others, but has emerged a winner.
Fibre2fashion spoke exclusively to Mr Imran Lateef, Director of the Pakistan based Texlynx who set up the company in 1998 and today is one of the largest buying houses in Pakistan. Other than from Pakistan, it also has developed the expertise of sourcing from India, China, Bangladesh and Vietnam. Over the years, it also has developed an esteemed clientele spread out across the globe.
We began by asking Mr Lateef, whether the budget had favoured the textile sector, to which he pessimistically said, “Do not think so as generally trade policy covers things related to industry which will come later and as per the budget, cost of energy might go up a bit which will have negative impact. Banking laws should be improved to make declaring bankruptcy and recovery of loans easier.
“The government and the electricity boards must provide consistent energy supply at competitive rates, when compared with other competitor countries like India, Bangladesh and China and better security must be assured for our overseas customers so that they may come down to Pakistan and frankly speaking I do not see any major positive impact of the budget, on the industry”.
Next we asked him to tell us as to which major proposals put forward by the sector had not been accepted by the government, to which he said, “Low interest rates for the industry, low energy cost and some kind of amnesty on bad debts. There is a possibility that the EU is considering duty free status for Pakistan and if it happens, it will be a major boost for the textile sector in Pakistan and a major set back to Bangladesh which enjoys this status today”.
Fibre2fashion spoke exclusively to Mr Imran Lateef, Director of the Pakistan based Texlynx who set up the company in 1998 and today is one of the largest buying houses in Pakistan. Other than from Pakistan, it also has developed the expertise of sourcing from India, China, Bangladesh and Vietnam. Over the years, it also has developed an esteemed clientele spread out across the globe.
We began by asking Mr Lateef, whether the budget had favoured the textile sector, to which he pessimistically said, “Do not think so as generally trade policy covers things related to industry which will come later and as per the budget, cost of energy might go up a bit which will have negative impact. Banking laws should be improved to make declaring bankruptcy and recovery of loans easier.
“The government and the electricity boards must provide consistent energy supply at competitive rates, when compared with other competitor countries like India, Bangladesh and China and better security must be assured for our overseas customers so that they may come down to Pakistan and frankly speaking I do not see any major positive impact of the budget, on the industry”.
Next we asked him to tell us as to which major proposals put forward by the sector had not been accepted by the government, to which he said, “Low interest rates for the industry, low energy cost and some kind of amnesty on bad debts. There is a possibility that the EU is considering duty free status for Pakistan and if it happens, it will be a major boost for the textile sector in Pakistan and a major set back to Bangladesh which enjoys this status today”.
Fibre2fashion News Desk - India
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