Pakistan Fears That The Whole Industry Will Collapse And The Mills Will Shut Down Frequently.

TariqSaud, chairman of the APTMA, said that because of the rising cost of domestic business, especially the high price of electricity and gas, the Palestinian textile industry has been hit hard, and about 110 factories have been closed down.

Saoud said that in November 2015, the export volume of Pakistan cotton yarn and cotton fiber decreased by 45% and 22% respectively, while clothing exports accounted for half of the textile industry's exports. It could have achieved a growth rate of at least 20% because of the GSP, but it was weak by domestic factors.

At present, there are 15 million industrial workers in Pakistan's textile industry, but due to the high operating costs, 30% spinning mills have closed down.

Saoud called on the government to take immediate remedial measures to save the textile industry from total collapse, including:

(1) implementing the local tax rebate scheme (DLTL) for the entire textile industry value chain;

(two) strengthening the refinancing of textile exports;

(three) increase tariffs to protect domestic industries;

(four) adopting non-tariff protection measures for synthetic fibers;

(five) stimulate exports of textile fibers through regional support programmes.

Extended reading

Two months ago (October 14th), all Pakistan's textile enterprises closed factories to strike against the growing cost of doing business, and warned the government that if the relevant requirements were not met within a week, the strike would continue.

The APTMA said the strike would cause a loss of 1 billion 800 million rupees to Pakistan's textile industry, and 300 thousand of textile workers lost their jobs for a day.

The main reason for this protest is the increasing electricity tariffs and the government's natural gas infrastructure development tax (GIDC). It is said that the two additivity will increase the operating cost of textile enterprises by 170 billion rupees annually.

At present, the tariff of Pakistan textile mill is 15 cents per cent, which is nearly 2 times the 8-9 cent of the neighboring competitors.

In the case of the EU's ultra GSP treatment, Pakistan textile exports still declined, while the main competitor, India.

We got $66 billion.

And 10% of the subsidy.

The Pakistan Statistical Bureau released the latest statistics. In the first quarter of 2015-2016 fiscal year (7-9 months), the import and export volume of both imports and exports declined. The export volume dropped to 6 billion US dollars from the same period in the same period of last fiscal year to 5 billion 164 million US dollars, a decrease of 13.93%, and the import volume dropped from 12 billion 470 million US dollars to 10 billion 680 million US dollars, a decrease of 14.39%.

The trade deficit was 5 billion 520 million US dollars, down 14.81% from the same period last year.

The main reason for the decline in imports is the fall in crude oil prices. The decline in exports is due to weak external demand and rising domestic costs in Pakistan.

The industrial and commercial circles, led by the Israeli Palestinian textile industry, criticized the government for the fact that the continued rise in business costs caused by the policy system was the main reason for the decline in exports.

The APTMA has organized a collective strike in textile industry, calling on the government to reduce import tariffs on cotton yarn.

BA

Bilwani, chairman of the export association, even thought that the Palestinian government should be completely exempt from the import of cotton yarn and prohibit the import of garments so as to protect and develop the domestic textile industry. JavedBilwani

If the government can reduce the cost of public utilities to the levels of India, Bangladesh, Sri Lanka and Vietnam, the Palestinian manufacturing industry has enough potential to solve the government's concerns about the decline in exports.