The All Pakistan Textile Mills Association (APTMA) believes export earnings of the textile sector will decline to $3 billion in the current fiscal year due to government’s policies that have strangulated the largest dollar-earning sector of the economy.
The sector has performed extremely well in the last two years with forex earnings increasing by $7billion. However, the sector currently faces scarcity of working capital, says ShahidSattar, Secretary General, APTMA.
According to Pakistan Bureau of Statistics, Pakistan’s textile exports increased almost 26 per cent to $19.3 billion in 2021-22. The national currency has lost more than two-thirds of its value of late, which means the pre-existing limits on textile mills’ working capital have become redundant. Exporters are facing huge issues in financing the export cycle, which lasts four to six months, adds Sattar
He criticized the government for failing to supply gas and electricity to the textile units that have recently been either upgraded or built anew using the subsidized loans under the Temporary Economic Refinance Facility (TERF).