PEW seeks more relaxations for textile sector

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The Pakistan Economy Watch (PEW) on Sunday lauded government’s move to provide facility of zero rating for the textile sector but termed it insufficient in the current scenario.
It asked the government for more relaxations so that Pakistan can regain its position in the international market.
Fourteen billion dollar textile industry which is playing critical role in the national economy is crumbling due to multiple reasons which need immediate government intervention, said Dr. Murtaza Mughal, President PEW.
He said that energy crisis, incoherent policies, regional competition, undue taxation etc. have taken toll on this industry providing jobs to 3.5 million people
He said that 57 percent exports are linked to textile industry, its share in manufacturing is 46 percent while it employs 38 percent of the urban labour.

The share of textile in the GDP is nine percent which will shrink creating problems for everyone including tens of millions of farmers depending on cotton crop, he added.
Dr. Murtaza Mughal said that other countries are providing subsidies to their textile sector and frequently devalue currency to get a foothold in international market which has left local sector unattractive for investors.
Government should review exchange policy, monetary policy and refund mechanism as textile sector is awaiting refunds worth one trillion and ten billion rupees since long resulting in severe liquidity problems.
Around thirty three percent textile mills have been closed depriving one million people of their jobs and if the situation remained unchanged more bad news will follow.

In: Economy WatchAuthor: AAMIR JAVED