‘MFN status to eliminate local value-added sector’
Industry leaders say Pakistan cannot compete with India’s economies of scale.
ISLAMABAD:
Representatives of the garments and home textile industry on Friday said granting Most Favoured Nation (MFN) status to India will eliminate the value-added sector in Pakistan which is providing jobs to millions and contributing more than any commercial part of the economy to export earnings.
Pakistan Hosiery Manufacturers and Exporters Association Central Chairman Muhammad Mushtaq, Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani and Towel Manufacturers Association of Pakistan Chairman M Naqi Bari said this while talking to Pakistan Economy Watch (PEW) President Dr Murtaza Mughal.
“Our production is restricted, exports are shrinking and we stand at a disadvantage as far as economies of scale and government’s support is concerned,” they complained. They said that instead of moving forward with value-addition, the country has been going backwards by exporting more of raw material like cotton and yarn.
All regional countries are following good practices, while India allows export of surplus cotton only, which results in stability for value-added sectors; Pakistan should also follow such enabling policies, they said.
Mughal said that Pakistan’s cotton and textile exports stand at $14 billion while Indian exports have touched $24 billion. Pakistan ranks lowest in the region as far as profit per cotton bale is concerned, he added.
Mughal said that Pakistani exports are declining, but earnings have improved owing to rising prices, which should not be claimed as a success.
Published in The Express Tribune, December 3rd, 2011.
Representatives of the garments and home textile industry on Friday said granting Most Favoured Nation (MFN) status to India will eliminate the value-added sector in Pakistan which is providing jobs to millions and contributing more than any commercial part of the economy to export earnings.
Pakistan Hosiery Manufacturers and Exporters Association Central Chairman Muhammad Mushtaq, Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani and Towel Manufacturers Association of Pakistan Chairman M Naqi Bari said this while talking to Pakistan Economy Watch (PEW) President Dr Murtaza Mughal.
“Our production is restricted, exports are shrinking and we stand at a disadvantage as far as economies of scale and government’s support is concerned,” they complained. They said that instead of moving forward with value-addition, the country has been going backwards by exporting more of raw material like cotton and yarn.
All regional countries are following good practices, while India allows export of surplus cotton only, which results in stability for value-added sectors; Pakistan should also follow such enabling policies, they said.
Mughal said that Pakistan’s cotton and textile exports stand at $14 billion while Indian exports have touched $24 billion. Pakistan ranks lowest in the region as far as profit per cotton bale is concerned, he added.
Mughal said that Pakistani exports are declining, but earnings have improved owing to rising prices, which should not be claimed as a success.
Published in The Express Tribune, December 3rd, 2011.