Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has said textile value added sector is facing serious economic hardships due to volatile exchange rate.
PRGMEA chief coordinator Ijaz A Khokhar has said that presently, Pakistan is facing multiple economic challenges, including Pak rupee devaluation, slow foreign inflows, depleting foreign exchange reserves, higher inflation. New government will need a competent team to address the economic issues, he said, adding that economic problems are due to lower exports and higher imports.
Khokhar said that despite massive efforts, Pakistan's total exports could hardly reach $23.22 billion mark as against the import of over $60.8 billion by end of fiscal year 2018. He said among overall exports, textile share is $14 billion.
He said that under prevailing circumstances, new economic managers would be required to adopt remedial measures for smooth and long term economic growth. He said the country needs long term economic policies for a sustainable growth.
"Depreciation of Pak rupee has not only adversely hit the business sector but also dealt a serious blow to the national economy. It has made imported raw materials more costly," he noted, saying that importers of Pakistani goods are also asking for downward revision of prices.
The PRGMEA chief said that new government would also have to face challenge of lower export growth. "Increase in export particularly textile will be one of major economic challenge for the new government and we need concrete steps to boost exports to earn sufficient foreign exchange to reduce pressure on external account," he said.
Khokhar further said that textile value added sector is facing serious economic hardships due to volatile exchange rate and devaluation of Pak rupee versus US dollar, as the prices of raw material had been increased manifold.
He said that previous government announced Rs 180 billion relief package for the export sector, but it could not be delivered completely due to bureaucratic hurdles. He called for a fresh bailout package for the textile sector to compete in the world market.