Six major sub-sectors of textile industry in Pakistan have shut down their units due to energy crisis, high cost of doing business and inconsistency in government policies, Tariq Saud, the chairman of All-Pakistan Textile Mills Association (APTMA) said.
About 30 per cent of the textile industry’s production capacity worth 3,467 million US dollar is not into operations thereby affecting the country’s exports, he said.
During 2006 to’ 13, Pakistan’s share in the global market has reduced from 2.2 per cent to 1.8 per cent due to weak performance of the textile industry whereas market share of regional competitors increased by 75 per cent from 1.9 per cent to 3.3 per cent, he said.
If this scenario continues, it is perceived that Pakistan would be soon excluded from the list of textile exporting countries. Domestic market is already dumped with cheap and subsidised textile clothing imports, he said.
It is not feasible to export cotton yarn to India as the customs duty on import is 28 per cent there whereas it is mere 5 per cent in Pakistan, Saud said.
Consequently, many textile mills have ended up shutting their operations on failing to compete with Indian textile industry.
India has introduced the Technology Up-gradation Fund Scheme (TUFS) and some incentives to promote and grow the textile industry, he added.
