ISLAMABAD : Islamabad Chamber of Small Traders on Wednesday said troubled Pakistani textile industry considered as the backbone of the export sector is facing new challenges which should be dealt with promptly.
The textile industry crumbling under high energy prices, struck up refunds and tight monetary policy is facing tough competition from India, Bangladesh, Vietnam, Thailand and other countries in the international market.
Now, China is completing a mega textile processing and export zone near Pakistani border in the Xinjiang province which will put the local industry on disadvantage, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.
By the end of 2018, the number of workers in the Chinese textile park will jump to four hundred thousand, the number of companies has been estimated to be three thousand while production of cotton bales will be nine million bales.
Shahid Rasheed Butt said that heavy investment and subsidies are helping China complete this project with an amazing speed while the goods will be exported to other countries through CPEC.
He said that the Pakistani textile industry fears that Chinese companies will also dump their textile products in Pakistan, which will be very damaging to the local industry.
Therefore, the government should take steps to safeguard local industry which is the highest foreign exchange earner and largest urban employment provider, he demanded.
Today China is the second largest supplier of home textiles with 25.22% market share; China’s penetration of the US home textiles market has already reduced Pakistan’s share.