Pakistan’s textile exports are in free fall. So says All Pakistan Textile Mills Association (APTMA).

The sector is currently operating at less than 50 per cent capacity utilization. The decline is caused by the Ukraine crisis, the floods in Pakistan, supply chain disruptions, liquidity constraints, energy shortages, and non-functioning of new projects.

Since floods have destroyed the cotton crop, only five million bales are available this year while the industry requires 14 million bales. Foreign exchange issues have curtailed the import of cotton and other essential inputs for exports. The cost has increased by 20 per cent due to demurrage /detention and delays.

A very substantial number of jobs have already been lost and many more are to follow if remedial measures are not urgently undertaken. Among these are exempting export-oriented sectors from import controls allowing letters of credit for raw material machinery, spare parts and other items to restore the industry’s supply line, and refunding all demurrage and detention charges incurred by the EOU sector to maintain competitive costs for exports and clearing all imports of export-oriented sectors which have arrived at parts whether against letter of credit or cash against documents. A moratorium on capital repayment for the textile sector has also been suggested.