No in­vest­ment tex­tile sec­tor

The Pak Banker - - Editorial -

En­ergy cri­sis is wors­en­ing day by day in Pak­istan as it is con­sid­ered a main source for run­ning the ma­chin­ery in­stalled in the fac­to­ries, mills and in­dus­tries. Pak­istan fac­ing se­vere en­ergy crunch due to which no in­vest­ment has been made in tex­tile sec­tor since 2005. Own­ers of the in­dus­tries and man­u­fac­tur­ers, who have took the loans for run­ning the busi­ness, been pay­ing in­ter­est to the banks and wages to the em­ploy­ees for the whole year, now they are forced to close their in­dus­tries for 100 days a year. More un­em­ploy­ment feared in con­se­quences of closer of the in­dus­tries. On this point chair­man of All Pak­istan Tex­tile Mills As­so­ci­a­tion Go­har Ejaz said that we are pay­ing our loan on world's high­est mark-up to the banks and as a re­sult have left noth­ing for new in­vest­ment. That is why we have noth­ing in our in­vest­ment plan for fu­ture in the coun­try. Tex­tile sec­tor has back­bone sta­tus of Pak­istan econ­omy as it con­trib­utes more than 60 per­cent in to­tal ex­port and it is 22 per­cent of the GDP but un­for­tu­nately it is ranked on fourth pri­or­ity for en­ergy need. On re­sults of dif­fer­ent hur­dles and prob­lems no growth in cot­ton pro­duc­tion has been wit­nessed for the last 16 years, as coun­try never pro­duced more than 12.5 mil­lion bales on av­er­age. Re­sul­tantly, the tex­tile sec­tor has to im­port three mil­lion bales to ful­fill its needs. There is dire need to adopt mod­ern technology in agri­cul­ture to en­hance the pro­duce for meet­ing the de­mand while on the other side In­dia has usu­ally 5 mil­lion bales sur­plus due to its ad­vance technology. Wrong poli­cies of the govern­ment also ham­per­ing the ac­tiv­ity and pro­duc­tion of the tex­tile sec­tor, its prom­i­nent ex­am­ple is that govern­ment has al­lowed the cot­ton im­port from In­dia through ship via Karachi while it can be im­ported through Wagha border in short time. Cot­ton im­port though ship takes weeks to reach the coun­try and in­dus­tries did not af­ford such de­lays in in­puts while a large num­ber of work­ers are busy in their work­places. De­spite protests and re­quests from the busi­ness­men, cham­bers of the coun­try and traders, govern­ment is not pay­ing heed to the prob­lems which have up­set the busi­ness com­mu­nity.

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