LAHORE: Pakistan Textile Exporters Association has termed their switching focus towards value-addition in textile industry a need of the hour, in view of the sustainable growth that hinges upon value-addition.
`Value-addition is the key to success and the government must focus on capturing greater share in regional and international trade through it,` Chairman PTEA, Shaig Jawed, said in a statement on Friday.
He said that countries all over the world encourage valueaddition to earn more foreign exchange. The textile exports of Bangladesh are touching $30 billion although they do not grow cotton, and only produce finished textile products with imported raw material.
All emerging economies have done the reforms by removing such impediments, which have helped them increase their exports. `so we need to follow their footsteps and take our industry in the right direction to achieve our national goal,` he said.
PTEA chairman was of the view that regional peers are rapidly multiplying their exports just because of the edge they have on the cost of doing business. High cost of production and un-competitiveness are major hurdles in exports growth and pragmatic incentive schemes need to be announced to reduce the cost of production and create a level playing field.
`Textile industry is unable to tap its potential in accordance with capacity,` he said. Appreciating the government`s efforts in uplifting the exports, he said that internal challenges are hindering the exports growth.
Severe cash flow crunch has squeezed the productivity resulting in reduced exports as billions of rupees are blocked in sales tax, income tax, customs rebate and textile policy incentive schemes.
With such a huge shortage in working capital, how textile exporters could even compete with rival countries, he lamented.