KARACHI: The inordinate delay in announcement of much trumpeted Textile Package is further deteriorating the largest industrial sector of the country and biggest export earner.
This was stated by acting Chairman (South Zone) Pakistan Readymade Garments Manufacturers and Exporters Association
(PRGMEA), Arshad Aziz in a statement. Aziz said that the current scenario is extremely worrying the precious foreign-exchange earning industries and the ever increasing cost of utilities and inputs is causing closure of many units across the country.
He said: “The biggest foreign exchange earning sector of textiles that was touching almost 4 to 5 billion dollars before
PPP regime is now dwindling and have fallen to less than two billion dollars during current fiscal year. He said that it’s a shame that countries like Bangladesh that import cotton yarn for Pakistan had brought to its garments exports to over $15 billion.
Similarly some other competitors like Sri Lanka, Vietnam, India have increased their garments exports to even more than Bangladesh. “Textile package delay has created further unemployment and closure of many units, which could not survive due to funds stuck up in refunds and no package announced to compete with the competitor countries which have given incentives to the exporters which has increased their export,” Arshad said.
He said: “We were given GSP Plus facility by the European Union but due to stuck up capital with the government to the tune of billions of rupees has rendered us unable to exploit this opportunity. “Unfortunately, we are unable to increase the exports and also not able to sustain but in fact we have lost our market share to the competitors.”