The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, and the President and former provincial minister, Mian Zahid Hussain, said on Wednesday that the continuous decline in cotton production and the constant increase in business costs have tarnished the future of Pakistan’s largest industrial sector. He said it has become difficult to continue business at the current electricity, gas, and tax rates.

Mian Zahid Hussain said that the spinning units are closing down while Pakistan faces difficulties in the international market.

Talking to the business community, the veteran business leader said that apart from refunds and high interest rates, the textile sector also faces problems like unilateral decisions and policy ambiguity, which is continuously decreasing investment in this sector.

The business leader said that the weaving industry is currently more dependent on imported yarn, and misuse of the Export Facilitation Scheme is also rising.

He noted that the textile industry is far from value addition, while research and development are nonexistent. Textile exports depend more on the European Union and American markets. Still, we are far behind in introducing new and improved products.

He observed that established government institutions also prefer lip service over something concrete.

Mian Zahid Hussain said that the FBR’s attitude is becoming harsher due to the IMF targets. As a result, the burden of various types of taxes on the export industry is increasing, and workers are being forced to work under severe pressure, which is creating problems.

The ongoing terrorism in the country is also hurting the overall situation, which has reduced the possibility of any improvement.

Mian Zahid Hussain said that the fear of declining textile exports in the current financial year is growing, affecting the export targets. Due to the lack of a clear textile policy, this vital industry is losing its direction.

He said that if the focus is given to value addition, a significant increase in Pakistan’s exports in the short term is possible, which can also increase employment. Currently, most of the units are operating below their production capacity, mainly due to distrust and a lack of cooperation between the industry and the government.

Mian Zahid Hussain further said that the government has tried to reduce the problems faced by the industry to some extent by lowering the interest rate to 12 percent. However, the interest rate in Pakistan is still much higher than in other countries in the region.

Therefore, he said, the industry’s capital shortage will not be eliminated unless the interest rate is reduced from ten percent to single digits.

Mian Zahid Hussain said the textile industry urgently needs to resolve its refund issues, ensure its electricity and gas supply at competitive rates, and increase cotton production.

Increasing Pakistan’s exports in the global market is impossible without these basic steps. He warned that our industry will continue to decline unless the issues are resolved in consultation with industry representatives.