Patron in Chief of the All Pakistan Textile Mills Association (APTMA) Dr Gohar Ejaz on Saturday indicated that the textile industry is expecting over 20% growth in exports this fiscal year, cautiously adding that this is possible if the government continues with the policy of ‘Regionally Competitive Energy Tariffs’.
APTMA, a trade organisation representing the largest industrial sector of Pakistan, said that the textile industry posted record export growth in FY22 with its expansion and investment plans under the State Bank of Pakistan’s (SBP) Long Term Financing Facility (LTFF) and Temporary Economic Refinance Facility (TERF).
“In addition, the country’s textile industry plans to import 6 million bales of cotton this year from the US and Brazil,” said Gohar.
The textile sector makes up a lion’s share of Pakistani exports. In the first eleven months of FY22, the exports of textile commodities surged to $17.62 billion against exports of $13.74 billion in the same period of the previous year, according to latest data published by the Pakistan Bureau of Statistics (PBS) on Friday.
Earlier this month, the textile industry sought the prime minister’s help for the restoration of gas to the sector, stressing that a loss of almost $1 billion in exports would take place due to energy suspension and long holidays.
Textile sector could see export-loss of $1bn due to suspension of energy: APTMA
Gohar, in a letter to Prime Minister Shehbaz Sharif, stated then that the textile industry had achieved a new record in terms of exports, and the momentum could be lost due to energy-suspension.
“The fantastic growth was enabled by the implementation of RCET, investment of over $5 billion in expansion and establishment of 100 new textile units resulting in enhanced export capacity of $500 million per annum.
“It is inexplicable that the exporting sector which has the capacity to deliver over $2 billion in exports per month is being denied energy/gas and consequently, exports will be significantly lower, much to the detriment of Pakistan’s economy.”
Back then, Gohar stated that textile exports were expected to increase to over $25 billion in the coming fiscal year and if that momentum was lost due to energy supply and cost constraints, Pakistan would be forced to seek an additional $6 billion in loans, which under the circumstances may not be possible.