• Download the Constitution of Pakistan
  • Advertise
Wednesday, July 16, 2025
  • Login
NEWSLETTER
ECONOMY
  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology
No Result
View All Result
  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology
No Result
View All Result
ECONOMY
No Result
View All Result
Home Business

Textile exports to dip by $3bn due to govt policies

by News Publishing
August 12, 2022
in Business, Economy, New, News
Reading Time: 2 mins read
0
Textile exports to dip by $3bn due to govt policies
Share on FacebookShare on TwitterLinkedinWhatsapp

The All Pakistan Textile Mills Association (Aptma) believes export proceeds of the textile sector will go down by up to $3 billion in the current fiscal year because of the government’s policies that have “strangulated” the largest dollar-earning sector of the economy.

Aptma Secretary said “I can’t see us getting out of this perfect storm. It’d be a miracle if we’re able to retain our exports at the current level,” while speaking at a seminar organized by the Pakistan Institute of Development Economics on Thursday.

According to the Pakistan Bureau of Statistics, Textile exports increased about 26 percent to $19.3bn in 2021-22.

Mr. Sattar said the textile sector performed “pretty well” in the last two years as its foreign earnings increased by roughly $7bn. However, he said he’s become a “big skeptic” with regard to the immediate future of the textile sector given the severity of its working capital crisis.

The national currency has lost more than two-thirds of its value of late, which means the pre-existing limits on textile mills’ working capital have become redundant. “Exporters are facing huge issues in financing the export cycle, which lasts four to six months. You need double the amount of currency now to finance that cycle,” he said while criticizing the sales tax that’s meant for domestic sales but results in mopping up liquidity from the export-oriented segment of the textile sector.

“You collect Rs300-350bn a year and retain up to Rs60bn (and refund the rest). This has soaked up liquidity. The Export Finance Scheme just doesn’t cover the lack of working capital. How can our exports grow if we don’t have working capital?” he said.

He criticized the government for failing to supply gas and electricity to the textile units that have recently been either upgraded or built anew using the subsidized loans under the Temporary Economic Refinance Facility (TERF).

“We invested heavily through TERF in new plants and machinery and upgradation, But they’ve not been given the energy that they need to operate on. All these people who expanded their operations are now in fact cursing me, saying the expansion isn’t being utilized. Who will service these debts?”

Tags: Economygovt policieslatestTextile Sector
News Publishing

News Publishing

Related Posts

Pakistan, Russia sign Protocol to restore & modernize PSM

Pakistan, Russia sign Protocol to restore & modernize PSM

by News Publishing
July 11, 2025
0

Pakistan and Russia have signed a Protocol to restore and modernize Pakistan Steel Mills (PSM) in Karachi, reaffirming their long-standing...

PSX soars to new high of over 133,000 points in intraday trade

PSX soars to new high of over 133,000 points in intraday trade

by News Publishing
July 7, 2025
0

July 8, 2025: The Pakistan Stock Exchange (PSX) continued its remarkable upward trend on Monday, as the KSE-100 index surged...

Pakistan, Azerbaijan sign $2billion investment agreement

Pakistan, Azerbaijan sign $2billion investment agreement

by News Publishing
July 5, 2025
0

Pakistan and Azerbaijan have signed an agreement for investment worth two billion dollars in diverse sectors of Pakistan's economy. The...

Electricity Rate cut 2025

NEPRA Slashes Power Tariff by Rs1.16 Per Unit

by Anum Arif
July 2, 2025
0

In a major relief to power consumers across Pakistan, the National Electric Power Regulatory Authority (NEPRA) has approved a reduction...

Petrol price increased by Rs8.36 per litre for next fortnight

Petrol price increased by Rs8.36 per litre for next fortnight

by News Publishing
July 1, 2025
0

The Finance Division has announced a significant increase in fuel prices, citing volatility in global crude oil markets. Effective from...

PSX 2025

PSX Crosses 125,000 Points for First Time

by Anum Arif
June 30, 2025
0

The Pakistan Stock Exchange (PSX) achieved a historic milestone on June 30, 2025, as the benchmark KSE-100 Index crossed the...

Next Post
Indian, Pakistani siblings reunite 75 years after Partition 1947

Indian, Pakistani siblings reunite 75 years after Partition 1947

About Us

Economy.pk is a source of economic, political, business, finance, health and sports updates.

Important Categories

  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology

Social Media

  • Facebook
  • Instagram
  • Twitter
  • Linkedin
  • YouTube
  • Linkedin
  • TikTok
  • WhatsApp
  • About
  • Advertise
  • Careers
  • Contact

© 2024 Economy.pk - Web Development by Digital Otters

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology

© 2024 Economy.pk - Web Development by Digital Otters