Government meddling ruins textile industry

Lahore: Pakistan's textile industry, believed to be the country's economic spine, is finding itself in a strangle-hold as the government continues to export cotton to its regional business competitors at the cost of local entrepreneurs' competitive viability.

In what could be termed a strange development, in April this year alone the country's spinning industry had to import 47,500 bales of cotton from the United States, after the government did not desist from exporting the raw material to its business rivals.

The situation left local manufacturers wailing over what they dubbed 'a strange logic' and over half a million spindles had to be shut down consequently due to a shortage of raw cotton within just a few months, rendering nearly 15,000 workers jobless.

As the crisis worsens with every passing day, textile tycoons have abstained themselves from investing further in this sector, fearing massive bank defaults are just around the corner.

Employing 40 per cent of country's total industrial work force and accounting for 46 per cent of the national manufacturing base, the textile sector's diverse product offerings constitute 11 per cent of the country's GDP of about $410 billion.

Approximately 60 to 70 per cent of Pakistani exports come from the production of cotton textiles and apparel.

According to statistics collected by Gulf News, there are 1,221 ginning units operational in the country, featuring an installed capacity of 20 million bales of cotton. Similarly, the spinning sector constitutes 408 spinning units, with an installed capacity of 157,143 rotors; while the 50 composite units are functioning with an installed capacity of 10.1 million spindles.

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It is noteworthy that like every single year, the textile industry signalled an SOS this year too by publishing advertisements in the local press that begged the government to stop exporting raw cotton.

Although exports of raw cotton did not halt as a result of the media campaign launched by the All Pakistan Textile Mills Association (APTMA), the 'infuriated' government functionaries made the agitators run for cover.

Accusing each other of playing the state touts, the local manufacturers are thus at daggers drawn at each other as none is ready to face the state's wrath.

Widely deemed to possess a $50 million export potential by 2016, the Pakistani textile industry is today helplessly watching its international competitiveness being eroded by high utility tariffs, shortages of raw materials, unscheduled power breakdowns and machinery damage due to voltage tripping.