‘Value-added textile sector tumbling down’

Textile sector tumbling down

August 28, 2012:  It is indeed, a great irony that whiles the exports of the vital sector of our economy – the value-added textile sector is tumbling down, some associations exporting raw material, which includes our precious energy are cheering and celebrating which is a sorry state of affairs, lamented Muhammad Mushtaq, Chairman, Value Added Textile Forum.
He said that during the year 2011-12 as compared to 2010-11 exports of this vital value added textile sector have greatly declined, which is evident from the facts and figures. Exports of knitwear declined by 22.2 per cent in quantity terms and 14.37 per cent in terms of value, bedwear exports declined by 19.11 per cent in quantity terms and 16.30 per cent in terms of value, readymade garment exports declined by 25.95 per cent in quantity terms and 7.84 per cent in terms of value, towel exports declined by 17.18 per cent in quantity terms; 10.25 per cent in terms f value.

As against the serious decline of the value added textile exports, which fetch huge amount of foreign exchange after value addition, the exports of the raw material – raw cotton exports increased by 77.82 per cent in quantity terms and 26.65 per cent in terms of value.

We really wonder at the cause of such jubilation by the so called textiles association in the above scenario because the largest foreign exchange earnings and largest employment generating – value added textile sector’s exports have considerably declined and it should indeed be a cause of great worry and concern for our government.

Despite the fact that frequent load shedding of gas and electricity and the law and order situation persisted in 2010-11 as well as in 2011-12 but still exports have declined in 2011-12 just because of our government’s wrong policies and complete apathy and lack of concern for the value added textile sector, as the government takes on board only the raw material exporting association, which is a textile association only in name while the 12 value added textile associations contributing the bulk of foreign exchange earnings are left “high and dry” and complete ignored.

He emphasised that due to this scenario large number of value added textile export industries are shifting abroad due to better opportunities and incentives leading to flight of capital and imminent unemployment which the government should take serious notice of and remedial measures with pragmatic and most realistic policies to save this vital sector – the backbone of our nation’s economy from ruin and disaster.-

 

Courtesy: BR

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