TAHIR AMIN

ISLAMABAD: Textile industry fears further drop in its exports, saying that expected Prime Minister Shahid Khaqan Abbasi might not be able to resolve industry problems due to short time and little say in policy making and financial matters.

Talking to Business Recorder here on Monday, the representatives of different associations of textile sector said they had little hope of significant change in the government policy towards exports-oriented sectors. Due to political uncertainty and financial constraints, the upcoming government may not give due focus on the industry, which would cause a setback to exports.

Expected Prime Minister Shahid Khaqan Abbasi has already announced that the government’s policy, which was under way before Nawaz Sharif’s dismissal by the Supreme Court on Friday last, on all matters will continue. He further stated that the incoming federal cabinet would be chosen in consultation with the party.

The Textile Ministry has been run without a minister for the last over four years, which shows the non-seriousness of the government. The industry stakeholders are not expecting nomination of a textile minister in new cabinet.

Pakistan Apparel Forum Chairman, Jawed Bilwani said that high cost of production was the major factor behind slowdown in exports. The exports-oriented sectors can be made competitive with other regional countries by reducing input cost i.e. reduction in power and gas tariff and release of stuck up tax refunds of exporters.

The expected prime minister may have little say in resolving these issues, said Balwani, adding that Chief Minister Shahbaz Sharif has always raised textile sector issues with former Prime Minister Nawaz Sharif and former Finance Minister Muhammad Ishaq Dar. The industry was expecting a turnaround if Shahbaz Sharif became prime minister, he added.

The representatives of All Pakistan Textile Mills Association (APTMA) said that 150 textile mills had been closed during the last six months, rendering thousands of people jobless due to high input cost including gas and electricity prices, over value exchange rate and stuck up of refunds claims.

Electricity is available at Rs 10.5/kwh for the industry in Pakistan as compared to Rs 7/kwh in other regional countries including Bangladesh. Furthermore, gas is available at Rs 1000/MMBTU in Pakistan against Rs 400 in Bangladesh. In such circumstances the industry could not compete in international market and, hence, is losing customers.

Khaqan Abbasi had little say in resolving gas/LNG issues of the industry even when he was minister for petroleum and natural resources and decisions were being taken by two people i.e. former PM Sharif and former Finance Minister Dar. The APTMA officials said that industry was expecting little from Abbasi as the policies will not be changed for 45-50 days.

They further said the government had released Rs 7 billion to textile sector under the prime minister package for exporters so far against their claims of Rs 12 billion. However, with the increasing political uncertainty exporters are worried about implementation of the prime minister package. “Though the package was not implemented in total, at least it had given some hope to the exporters,” said APTMA official, adding the industry stakeholders fear that Abbasi may not focus on textile sector that would result in increasing their problems and decline in exports.