Textile Industry: Lack Of Cost-Effectiveness Impairs Export Potential By $3.3 Billion
Textile industry circles said the share of exports in the $20 billion industry is $13 billion. Lack of cost-effectiveness has impaired the industry’s export potential by $3.3 billion. Subsidised, cheap and dumped imports of cotton and synthetic textiles worth $1 billion find their way into the Pakistani market. There is a further inflow of $2 billion of clothing and garments into the local market through unofficial trade including ATA, smuggling, border trade and the like, a fact corroborate by the Sustainable Development Policy Institute. Altogether $6.3 billion worth of potential is being surrendered to the foreign invasion of textile products.
The textile industry of Pakistan has surrendered 33 percent of the total size of the industry for not taking measures for the restoration of viability. The industry circles have wondered why the government is supporting the interest of a few traders and leaving the country’s industry to drown, contributing 8.5 percent to the $220 billion GDP of the country.
They said it was of urgent importance that the anti-dumping duty as per the findings of the National Tariff Commission be immediately imposed as an emergent disaster management measure in addition to the Regulatory Duty in place to counter the $6.3 billion loss on account of dumped imports of textiles finding way into the domestic market. He said that imposition of 25 percent Anti-Dumping and Regulatory Duty across the board for all yarns and fabrics immediately is the need of the hour. These circles said 25 percent duty required to offset the dumping of yarns and fabrics immediately.