KARACHI: All Pakistan Textile Mills Association has written a letter to Governor State Bank stating that the country’s textile sector is on the verge of default as 7 million people have become unemployed.
In a letter sent by Aptma to Governor State Bank Jameel Ahmed expressing concern, it is said that the textile industry is facing three major problems. The local textile industry is operating at less than 50 percent productivity, leaving the textile sector close to default and 7 million people unemployed.
The letter said that if the textile sector were to be closed in the current situation, unemployment would be high. With the closure of the textile sector, more than one crore people will become unemployed. The closure of the textile sector will also result in a loss of 10 billion dollars in annual exports.
Aptama said that local cotton production has reduced by 5 million bales due to floods and rains. Cotton production is less than 2 billion dollars in the country. Pakistan had to import 1 million bales of cotton. Banks are not opening LCs for imported cotton in the country as textile mills are running out of cotton stocks.
The association says the local textile industry will shut down completely due to non-availability of cotton. Aptama asked Governor State Bank to immediately issue the cotton import LC, saying that the consignment of imported cotton was stuck at the port.
