As per APTMA chairman, S M Tanveer, domestic textile industry has lost its competitiveness against the strong competition from other regions. As per the latest study by the GHERZI/IBA, the manufacturing of 20s and 30s single cotton yarn is around 15 per cent cheaper in India owing to factors like availability of better quality raw material and production efficiencies are higher due to the latest machinery replacement under the TUFS scheme at almost zero interest rate.

Tanveer said that while all the production factors including energy availability at affordable tariff, cheaper finance, lower wages and productive workforce are well in place in India, the textile industry in Pakistan, on the other hand, is struggling for energy availability without break over the last six years. Pakistani industry is also being burdened with various types of new taxes and inefficiencies which cannot be passed on to the buyers.

Though the textile industry is predominantly export-oriented and thus exposed to the international market, he says, it is losing sheen with textile and clothing exports declining or stagnant since February last. He further added that the situation is heading towards a serious repercussion on the farm sector, the entire textile value-chain and eventually the textile industry workforce. He has sought government intervention to restore competitiveness of the textile industry by ensuring realistic rupee value, electricity and gas availability at regionally affordable rate, immediate notification of TUFS scheme, liquidation of all pending refunds, removal of all new taxes and immediate announcement of zero rate regime for five export-oriented sectors.

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