Handling turbulence in the textile sector

The textile industry needs to flourish and grow, but government needs to promote the industry

There has been turbulence in the textile sector for several years. Textile factory owners have now determined that their thresholds have been reached and observed on June 20 a nationwide ‘black day’ to demand support from the government to bolster exports and maintain sustainability of their mills. The protests were promoted by several prominent organisations such as the All Pakistan Textile Mills Association and the Pakistan Textile Exporters Association. As in any democracy, the owners’ and workers’ right to organise and protest for what they feel are fair demands is recognised. There are, however, certain nuances in this saga that need to be parsed. While some of the demands are justified, there are others that indicate the industry wants protection from the government or ‘baby-proofing’. Regardless, there is a need for the government to work to promote the textile industry come what way. Its policies, though, suggest that interests lie elsewhere.

As far as reports go of workers possibly forced by employers to protest, in the textile hub of Faisalabad, for example, the unethical nature is recognised. There are also some terms by the textile protesters that are underhanded, such as their demand to block the import of Indian and Chinese products. Although one’s own brands should be supported, to outright block the competition is a tad pompous. The deep desperation can be fathomed owing to closure of units and disadvantageous policies — and the extent of the negative impact should be realised by our industrialist politicians themselves.

Government policies have set harsh standards for new and existing textile mills to survive, let alone thrive. Obstacles include higher tariffs on gas, increased electricity surcharges including a Rs3.63 per unit tax, and other raised costs. Textile is one of the strongest manufacturing industries for Pakistan but its success is dwindling due to the increased cost of running the factories and a decline in exports. Although abundant in resources such as cotton, the industry cannot flourish without some government relief and subsidies to recover losses thus far. Ironically, while clothing retail sales appear to be surging, export to other countries continues to discourage manufacturers. The government must reverse some of its policies to keep the industry alive. We watch with interest.

Published in The Express Tribune, June 22^nd, 2017.

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