7m people laid off in textile industry, associations claim.

KARACHI -- About seven million people in textile and textile-related industries have been laid off due to dwindling exports and the government's failure to end the economic crisis, representatives of the value-added textile associations said in a joint press conference on Monday.

The current government does not have any policy to end the various crises affecting textile producers and exporters, they said.

The industry is on the verge of closure as many units have already closed down. Several others are planning to either shut down or shift their production abroad.

Textile factories are being deprived of necessary raw material and accessories. Letters of credit worth as low as $5,000 are being refused, which has hit in-progress export orders of $500,000 per consignment. It's causing severe disruption and production delays and has led to the cancellation of export orders. Demurrage on various consignments has increased the cost too much, they said.

Despite such a difficult situation, the government is importing expensive luxury cars like BMWs for cabinet members. These imports will have no contribution to foreign exchange earnings. They won't

Value-added textile makers decry import curbs on dollar-earning export sector generate any taxes for the national exchequer and create zero employment, they said.

It is ironic that exporters who are bringing dollars into the country have been placed third on the priority list for the import of raw materials, they said. Essential items like wheat and edible oil are the first on the priority list while energy-related imports are second.

They complained that the dollar-earning export sector is placed below...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT