SIALKOT (November 01 2009): The export of value-added knitted garments, sportswear, made ups and other products will be badly affected if unrestricted export of raw materials like cotton yarn and raw cotton is not checked by the government immediately. This was stated by Dr Khurram Anwar Khawaja, Chairman Pakistan Hosiery Manufacturers and Exporters Association here Saturday.
He demanded immediate intervention by the government in the local supply chain mechanism to save the entire value-added textile sector. He said exports of value added textile products have already declined alarmingly during 1st quarter of the FY 2009-2010; and if this would trend continue, it might lead to closure of more industrial units resulting further unemployment.
The Ministry of Textile Industry seems to be concerned over this alarming situation but time for corrective measures was running short, he said. It is worth mentioning that export of value-added textiles registered more than 10 percent decrease during 1st quarter of the FY 2009-2010 as compared to corresponding period last year. During same time, export of raw cotton and yarn have been showing increasing trend.
Dr Khurram Anwar Khawaja said that raw cotton worth 67 cents a pound was converted into a piece of garment worth 5 dollars by the apparel sector but if it faces shortage of raw material, it will no longer survive. Therefore, the value-added textile industry should not be left at the mercy of blind market forces which were practically denying the supply of yarn to local manufacturers, rather the muscles of our competitors were being strengthened by way of supplying them the raw material, he added.
While Adil Butt said that government should follow the policy of prioritising supply of yarn to local industry because only this way the employment level could be maintained in the industry. It is important to mention that at present knitwear industry in Karachi, Lahore, Faisalabad and Sialkot is the largest employment providing sector in the country and nation cannot afford to put this sector at any risk, he said.
