According to a report by Pakistan’s “National” on July 31, the All Pakistan Textile Mills Association (APTMA) recently announced that it will hold a “one-day production suspension” event around the end of August to protest against the deterioration of the business environment in Pakistan’s textile industry. Fayaz, chairman of APTMA Punjab Province, said that in the past fiscal year 2015/16, Pakistan’s textile exports decreased by US$1.1 billion, a year-on-year decrease of 7.4%, while Bangladesh’s textile exports achieved a 15% growth over the same period. 70% of Pakistan’s textile mills face serious problems of high business costs. In the last fiscal year, Pakistan’s cotton output was only 9.8 million bales, a record low in the past 14 years. Cotton output in the major cotton-producing province of Punjab fell by more than 40% year-on-year; in the past three years, Pakistan Textile and apparel exports fell by US$1.4 billion. During the same period, the exports of major competitors Bangladesh, India, and Vietnam increased by US$3 billion, US$4 billion, and US$8 billion respectively. Pakistan’s international market share dropped from 2.3% to 1.5%, while India’s exports increased from 3.5% to 3.5%. to 5%, Bangladesh from 1.6% to 3.7%, and China from 30% to 38%.
Fayaz said that despite the historic decline in international oil prices, Pakistan’s trade deficit has continued to increase due to the sharp decline in exports. At the same time, Pakistan’s government debt has rapidly increased by US$48 billion in the past three years. If exports continue to decline, the international balance of payments will inevitably be unsustainable. In order to boost exports, APTMA calls on the government to firstly cancel the 4% import tariff and sales tax on cotton, and secondly, to cancel the National Electric Power Regulatory Agency (NEPRA) for the 2015/16 fiscal year. The related surcharges in the electricity price include restarting the export tax rebate process before the end of August to improve the financial liquidity of textile companies, and imposing a 15% import adjustment tariff on all imported synthetic cotton yarns. Holding a “One-day Suspension of Production” event to protest against the deterioration of the business environment in Pakistan’s textile industry
