Delayed shipments, non-availability of containers, high cotton and polyester prices and refusal of foreign buyers to increase prices are causing a severe financial crunch for the textile sector.

As per a report by The News, exporters are facing delays in shipments due to the unavailability of containers. Around 15-40 of containers are currently stuck at ports. This has led to the expiration of letter of credits to exporters.

The rates of all manmade fibres have increased in line with cotton prices. Cost of production has increased much beyond expectation, says an exporters. The shipping cost of a container from Lahore to Karachi has increased from Rs50,000 to Rs80,000. The cost of raw materials and accessories has increased by 30-80 per cent.

Foreign buyers however were not ready to raise prices. Exporters were executing orders confirmed three months back at loss or thin margins, he adds.