March 27, 2017
President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain on Monday said textile sector is not picking up despite best efforts of the government.
The present government has invested billions in the textile sector to boost exports as this sector is the largest foreign exchange earner and second largest job provider but to no avail, he said.
Mian Zahid Hussain said that on the other hand, Bangladesh which imports 95 percent of the cotton has become world’s leading exporter of garments outside China.
He said that exports have reduced by 20 percent during the tenure of incumbent government which is disturbing and calls for out of the box solutions.
The cotton production has dwindled from fifteen million bales to ten million bales necessitating imports, which has increased cost of doing business, he added.
The business leader said that those who links reduced exchange rate with increased exports are wrong as it is a temporary solution. He said that cost labour continue to increase in China which has a 80 billion dollar garments export market therefore many Chinese companies have moved to Bangladesh and Vietnam.
Both the countries import cotton and lacks industry like Pakistan but Chinese didn’t opted for Pakistan due to energy crisis and law and order worries.
As energy crisis is controlled and law and order is improved, many Chinese companies will relocate to Pakistan, he said.
