Chairman All Pakistan Textile Mills Association (APTMA) has expressed deep concerns over alarming decline in textile exports during November 2011 due to energy shortage and high interest rate.
He said the five major sectors of textile industry, including cotton yarn, cotton cloth, knitwear, bed wear and towel have registered steep fall in quantity terms during November 2011.
Chairman APTMA said the textile exports of cotton yarn have declined by 11 percent in November 2011 against corresponding period, followed by 22 percent drop in cotton cloth, 38 percent in knitwear, 40 percent bed wear and 20 percent in towel in quantity terms.
He said the decline is worsening with every passing month since the start of new fiscal year, which means there is less production for exports in the country due to obvious reasons.
According to him, the APTMA has been crying over the situation since day one and the latest report of the SBP annual report has corroborated the APTMA concerns.
The SBP annual report has pointed out that the manufacturing sector has suffered a serious setback. The industrial growth was negative 0.1 percent in financial 2011 due to prolonged power outages and reduction in gas supplies.
However, he said, the SBP report must also mention that high interest rate has also played havoc with the industrial growth besides the energy shortage. He said the cost of credit has been unbearable for industry and it was only the government having benefited from the credit available in the country.
Mohsin said the APTMA has been pointing time and again that non-availability of credit was putting textile industry growth in limbo and all demands of bringing it to single digit were falling on deaf ear.
According to him, the constant closure of textile mills was enough to prove the fact that sustainability of textile industry was doubtful in present situation. The NPLs are therefore piling up fast, he added.
Chairman APTMA has urged the government to take stock of the situation and engage the stakeholders to support the stumbling exports as Pakistan’s industrial growth was poor among all South Asian States.