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 five major sectors of textile industry, including cotton yarn, cotton cloth, knitwear, bed wear and towel have registered a steep fall in quantity terms during November 2011. Chairman APTMA said textile exports of cotton yarn have declined by 11 per cent in November 2011 against corresponding period, followed by 22 per cent drop in cotton cloth, 38 per cent in knitwear, 40 per cent bed wear and 20 per cent in towel in quantity terms. He said 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, APTMA has been crying over the situation since day one and latest report of 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 per cent in financial year 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 energy shortage. He said 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 APTMA has been pointing out time and again that non-availability of credit was putting textile industry growth in limbo and all demands of bringing it to a single digit level were falling on deaf ears. According to him, constant closure of textile mills was enough to prove the fact that sustainability of textile industry was doubtful in present situation. NPLs are therefore piling up fast, he added. Chairman APTMA has urged government to take stock of the situation and engage stakeholders to support the stumbling exports as Pakistan’s industrial growth was poor when juxtaposed with other South Asian states.