Pakistan: The Commerce Secretary Younis Dagha on Wednesday advised textile industry to focus on value addition to compete in the international market and arrest decline in exports. Dagha said cost of doing business is higher in Pakistan compared to neighbouring countries, but it is not the only hurdle in exports. Pakistan: The Commerce Secretary Younis Dagha on Wednesday advised textile industry to focus on value addition to compete in the international market and arrest decline in exports. Dagha said cost of doing business is higher in Pakistan compared to neighbouring countries, but it is not the only hurdle in exports. Lack of value addition is also a major reason (behind falling exports), he said, addressing an event hosted by Pakistan Hosiery Manufacturers and Exporters Association.
We have not played our role in value addition industrial production remains lower. Commerce secretary said Indian and Bangladeshi exporters invest in their industries, while in Pakistan foreign revenue earned from textile exports went back to stocks and real estate sector.
Investors should not divert textile money to real estate and other sectors, he added. Dagha said work on combined effluent treatment plant will soon start with the project cost to be borne half each by provincial and federal governments.
Provincial government has already sanctioned the budget, while the issue is pending with the planning commission at the federal level, which will soon be resolved, he added. Federal secretary said wheat and sugar polices are needed to be revived as both commodities are in surplus in the country and efforts are needed for their exports.
He said Pakistan Central Cotton Committee has been handed over to private sector, but there has been no improvement in cotton production since then. Zubair Motiwala, ex-president of Karachi Chamber of Commerce and Industry said yarn exports fetch $1.26 billion, but after value-addition this amount can go up to $7.5 billion a year.
Jawed Bilwani, chairman of Pakistan Apparel Forum said Pakistan s textile exports are lower than India, Bangladesh and Vietnam, while costs of production as well as minimum wages are comparatively higher in the country.
Bilwani said the country faces a widening trade deficit of more than $32 billion and it would not prosper if exports are not increased. Exports would increase when a level-playing field is provided to the industries.
We receive export orders when other suppliers are not available in the international market, he said. We get only spillover orders. Government usually announces funds, which are not released or partially released, he added.