New PTEA chief demands reduction in production costs to revive investment, exports

FAISALABAD, Sep 27 (APP): Newly elected chairman Pakistan Textile Exporters Association (PTEA) Rehan Naseem Bharara has demanded reduction in the rising production costs to revive investment and exports.

Addressing the Annual General Meeting, he said that the relentless rise in production costs was choking fresh investment in the textile sector, eroding Pakistan’s competitiveness in international markets and constraining export growth.

Therefore, an effective government strategy was urgent need of the hour to bring down costs, restore industrial momentum and accelerate economic activity as the sustainability of textile sector was directly linked with the livelihoods of millions of workers, he added.

He identified the rising cost of production as the foremost challenge confronting textile exporters under the prevailing economic conditions.

He said that Pakistan’s export sector was under mounting pressure because of the economic and industrial challenges facing the country, coupled with persistently high production costs, a heavy tax burden and elevated energy prices. These factors were adversely affecting industrial and trade activities, productivity and export competitiveness, he added.

Expressing concern over the continued slowdown in industrial output, the newly elected chairman said the export sector had been experiencing a troubling trend of negative growth since the beginning of the ongoing fiscal year.

He attributed the sluggish pace of expansion to the broader economic slowdown and said the prevailing business environment had made it increasingly difficult for exporters to compete in international markets.

He pointed out that repeated increases in energy costs and raw-material prices had significantly increased the cost of doing business in Pakistan, rendering our exports less competitive internationally.

He urged the government to revisit and redesign its export policies with a focus on improving competitiveness, stimulating investment and preventing further deterioration in industrial activity.

He cautioned that policy measures that increased the cost burden on industry could undermine efforts to expand exports and generate employment.

He appreciated the outgoing PTEA team for its efforts in addressing issues faced by exporters and resolving trade-related matters at various forums.

The newly elected Vice Chairman Haris Yousaf speaking on the occasion stressed the need for unity and collective action within the textile sector, saying the industry must speak with one voice to urge the government to consolidate and strengthen the economy, improve industrial productivity and create a business environment conducive to investment and exports.

He assured members that the new PTEA leadership would continue working for the long-term viability and international competitiveness of Pakistan’s textile industry.

“No stone will be left unturned for the promotion of exports and the development of the textile industry”, he said, adding that exporters’ genuine problems would be taken up at every appropriate forum and all possible efforts would be made to secure their resolution.

Earlier, outgoing PTEA Chairman Sohail Pasha, while presenting his annual report, said that despite the formidable challenges confronting the textile sector, serving as chairman of the country’s premier association of textile manufacturers and exporters had been a rewarding experience.

He said that during his two-year tenure, the association made every possible effort to address the trade and business-related concerns of its members by effectively presenting their issues before relevant government departments and other appropriate forums.

He termed the government’s efforts to clear outstanding refunds a positive development, saying the release of these funds would help improve liquidity and contribute to the acceleration of industrial activity.

He observed that despite Pakistan’s economy losing significant momentum, exporters had continued to withstand severe pressures and remained committed to achieving export targets.

He expressed the hope that the newly elected team would build on the association’s previous initiatives and further strengthen linkages with local and international business communities to promote and safeguard the interests of Pakistan’s textile industry.

Later, shields were presented to the outgoing office-bearers in recognition of their services.

A large number of textile exporters and members of the association participated in the Annual General Meeting.