LAHORE - Chairman APTMA S M Tanveer has said the textile industry of Pakistan has lost its viability against the regional competitors and it is no more competitive in the international market place.
He said a latest study by the GHERZI/IBA has revealed that the manufacturing of 20s and 30s single cotton yarn is around 15% cheaper in India due to various factors availability of raw material of better quality and yield. The production efficiencies are higher due to the latest machinery replacement under the TUFS scheme at almost zero interest rate.
Furthermore, he said, all the production factors including energy availability at affordable tariff, cheaper finance, lower wages and productive workforce are well in place there.
He said the textile industry in Pakistan, on the other hand, is struggling for energy availability without break over the last six years. Also, the industry in Pakistan is being burdened with various types of innovative taxes and inefficiencies which cannot be passed on to the buyers.
According to him, the textile industry is predominantly export-oriented and thus exposed to the international market to lose its substantial market share, consequently our textile and clothing exports are declining or stagnant since February last. Resultantly, the textile mills are converting fast into the category of sick units and closing down one after another.
Chairman APTMA has warned that the situation is fast heading towards a serious repercussion on the farm sector, the entire textile value chain and eventually the textile industry workforce.