FAISALABAD: The Pakistan Textile Exporters Association (PTEA) has expressed deep concern over the drop of 6.38% in textile exports in December 2014 despite the availability of GSP Plus scheme.
Unprecedented energy shortage and lack of working capital are the major factors behind the substantial drop in exports.
PTEA Chairman Sohail Pasha and Vice Chairman Rizwan Riaz apprehended that export numbers might be even worse in coming months as the textile industry of Punjab has been deprived of basic fuel and working capital.
Providing details, they said the country exported textile goods worth $1.175 billion in December against exports of $1.255 billion in the same month of previous year.
Value-added items also recorded a negative growth as cotton cloth exports went down 13.62%, bed wear 11.54%, towels 11.39% and made-ups 10.04%.
“A shaking economy is the future due to the non-serious attitude of the government, as exports are heading towards collapse after a visible decline,” they said.
Energy shortage and liquidity crunch are the prime causes of the decline as a major part of production capacity of the textile industry is lying idle due to short supply of electricity and gas.
Published in The Express Tribune, January 24th, 2015.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ