Textile exporters have brought to the fore a couple of pertinent points needing government’s attention. They basically pertain to elements obstructing exports from Pakistan, including low cotton output, non-availability of cotton yarn, inflated energy bills, and in-land transportation and shipping constraints. Many of the issues can be managed if there is a coherent approach on the part of the government and the private sector, while dealing with production and facilitating irritant-free exports. While Pakistan has done well in exports despite the pandemic, it is seen failing on many of the fronts where it could excel.
Exporters have pointed out that soaring energy prices make production uncompetitive on the global front. Same is the case with in-land transporters who demand an upscale logistics price owing to hike in fuel prices that raises the cost of doing business. Exporters also cry foul as they are denied availability of cotton yarn and other such raw materials imports from right across the border, and the same is shipped from faraway destinations. This makes the circle of in-bound imports, subsequent production and exports unconceivable.
While the government intends to boost exports, it has to cut down on energy tariffs. The policy should be to maximise production and liberalise trade. Until and unless, the government acts as a regulator-cum-trouble shooter, vested elements will keep on exploiting mechanisms to keep Pakistan out of international business, and at the same time make its produce untenable at home.
Despite obstacles, the textile sector bagged a staggering $15.4 billion during 2020-21, and this could increase manifold if raw material is available abundantly and the cost of production is curtailed. There is no harm in importing raw material from India, Iran or CARs, as Pakistan’s thrust is now on geo-economics. A preferential trade agreement with Uzbekistan is pending, and it should be synchronised with normalisation in Afghanistan. The government should prioritise foreign trade and as a cushion plough loopholes at home.
Published in The Express Tribune, August 22nd, 2021.
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