Karachi: The All Pakistan Textile Mills Association has written a letter to the Governor State Bank, stating that the country’s textile sector is on the verge of default while 7 million people have become unemployed.
In a letter sent by Aptma to Governor State Bank Jameel Ahmed expressing concerns, it is said that the textile industry is facing three major problems. The local textile industry is operating at less than 50 percent productivity, which has pushed the textile sector close to default and left 7 million people unemployed.
The letter said that if the textile sector were to shut down in the current situation, there would be massive unemployment. Due to the closure of the textile sector, more than one crore people will become unemployed. The closure of the textile sector will also result in loss of annual exports of 10 billion dollars.
Aptama informed that local cotton production has been reduced to less than 50 lakh bales due to floods and rains. Cotton production equivalent to $2 billion in the country has been low. Pakistan will have to import one 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 be completely shut down due to non-availability of cotton. Aptma requested Governor State Bank to release cotton import LCs immediately, saying that the consignments of imported cotton are already stuck at the port.
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