Pakistan - Textile Machinery Imports Down By 42 Percent

Importers said that imports of textile machinery declined by 42 percent during the first month of FY09, due to persistent crisis in textile sector and high cost of doing business in the country. Also said that industrialists are reluctant to import machinery under the current circumstances and have adopted wait and see policy after the negligent attitude of the government for last one year.

"Despite several assurances given by federal ministers and the government, there is no relief in sight for the ailing textile industry, importers said. Industrialists are not expanding their operations and units due to uncertain situation and are waiting for a long-term textile policy, they said.

They said that textile industry is in crisis for last two years and the main problem is high cost of doing business. The power, gas tariffs are also being increased frequently which adds to the woes of the industry, they added.

According to official statistics released by Federal Bureau of Statistics (FBS) during the first month of current fiscal year 2009, country's textile machinery import has declined by 42.24 percent.

The overall textile machinery imports stood at 23.63 million dollars in July 2008 over the imports of 40.911 million dollars during the same period of FY07, depicting a decrease of 17.281 million dollars during the first month of current fiscal year.

Imports of textile machinery also show a decline of 26 percent, as compared to June 2008, as during June overall textile machinery imports stood at 32.101 million dollars. "If the present government does not announce any relief package for textile industry, there will be further decline in the imports of textile machinery in near future," importers said.

During FY08 the country's textile machinery imports declined to 438.270 million dollars from 502.898 million dollars in FY07, depicting a decrease of 64.6 million dollars in last fiscal year.

Source: Business Recorder