The Government should work to protect the interest of the textile export sector, which has been sharply hit by sudden appreciation in value of Pakistani rupee against US dollar over the past few months, All Pakistan Textile Mills Association (APTMA) group leader Gohar Ejaz and chairman Punjab SM Tanveer said during a press conference.
Pakistani rupee has appreciated historically against US dollar from Pk Rs. 108 per dollar to Rs. 98 per dollar, within past few months. This, however, would work positively for the domestic textile industry, the duo said.On the other hand, the fall in dollar value has caused several textile exporters to stop operations, due to heavy loss in export payment, while cost of production and cost of doing business still remain high. Mr. Ejaz said Pakistani economy has been enduring 10 percent inflation over the past 10 months, and this has been embedded in its cost of doing business. The inputs and raw material for textile industry are still valued at exchange rate of Rs. 108 per dollar, for which Pakistani goods cost more in international market, as compared to regional competitors like India and China.To boost competitiveness of the textile industry, the mark up rate should be reduced to 3 percent, while continuous gas supply should also be ensured for at least five days per week, and that too at reduced rate, he suggested.He was hopeful that economic managers would soon revise the competitiveness as well as cost of doing business ratios for domestic textile industry to bring them at par with the appreciated rupee.
Mr. Tanveer suggested that just like the Indian and Chinese governments, the Government of Pakistan should also introduce compensatory reliefs for the textile sector like reduction in interest rates, power charges and cost of doing business.
