Investors losing interest in textile sector: PEW

[Lahore_Real_Estate]

ISLAMABAD:(Online) – The Pakistan Economy Watch (PEW) on Sunday said investors are losing interest in the textile sector which is largest foreign exchange earner and biggest urban employment provider of the country. The situation need urgent attention of the authorities as the recent developments can cast a negative shadow on the economic future of Pakistan, it said.
The problems of textile sector that has 55.3 per cent share in exports, 46 per cent share of total manufacturing, 38 per cent of labour force and 9 per cent of the GDP cannot be ignored, said Dr. Murtaza Mughal, President of the Pakistan Economy Watch.
He said that many textile units has shifted to other countries while major groups are finalising relocation plans which is very worrying development as it is directly providing jobs to 3.5 million people. Bangladesh which is completely dependent on imported cotton has become a favourite destination for the Pakistan’s textile sector because of their enabling policies, labour costs and special concessions offered by western countries.
“80 countries have free market excess to EU and US but Pakistan, the frontline state in war on terror has been denied of the facility hurting growth,” he said. Dr. Murtaza Mughal said that these issues should be taken seriously as no other sector has capacity to guarantee massive foreign currency earnings, job creation and economic growth.
He said that failure of the government to provide energy and security has resulted in massive losses to industrial community which is resulting in exodus which proves that Pakistani entrepreneurs have lost whatever faith they had. There is no way in sight to reverse the dangerous trend except serious efforts by the rulers to address the critical issues of energy and security, he said.
“Concerns of business community must be addressed urgently as a unit once relocated to another country cannot be brought back,” he warned. Dr. Murtaza Mughal said destruction of cotton crop in Sindh should be estimated through various sources as some elements are overstating the losses to support foreign textile mills on the cost of domestic industry.
He asked the textile ministry to undertake steps to avoid looming crisis otherwise India and China will grab the remaining share of Pakistani textiles in the international market which is already going down since three years, he warned.