Textile exporters in Pakistan say the recent hike of Rs 5.89 per unit in power and Rs 4.12 per litre in petroleum would fuel inflation and ultimately affect the already crisis-hit industry.
Their main fear is the cost of production in Pakistan isalready one of the highest in the region and these hikes will make Pakistani products lose their competitiveness in export markets. They say instead of increasing petroleum prices, the government should decrease the petroleum levy. Meeting export targets would be difficult if input prices are raised.
Exporters warn that frequent increase in power and petroleum prices will accelerate the capital flight from the country and discourage local and foreign investment. Therefore, in the larger national interest, they demand the government should take back this decision to save the economy from further damage.
Pakistan textile units are as it is suffering a serious energy shortage. Many industrial units have closed operations. Mill owners have urged the government to explore renewable energy resources and overcome the energy crisis in the country.