According to leaders of the value-added textile groups, almost seven million people have lost their jobs in the textile and associated industries as a result of declining exports and the government’s failure to solve the financial crisis.
They claimed that the current administration’s lack of a crisis management strategy for the many crises affecting exporters and producers of textiles.
The industry is about to go out of business because so many units have already shut down.
Others want to either stop operating completely or move their manufacturing elsewhere.
The essential raw materials and accessories are not being provided to textile companies.
Textile Industry Export Issues
In-process export orders worth $500,000 per shipment are being affected by the rejection of letters of credit costing as little as $5,000.
Export orders have been canceled as a result of the substantial disruption and manufacturing delays that have been caused.
They claimed that the cost had escalated too much due to demurrage on numerous consignments.
The government is importing pricey luxury vehicles like BMWs for cabinet members despite the dire circumstances.
These imports won’t increase revenue from foreign exchange. They claimed that they would not produce any taxes for the national exchequer or any jobs.
Ironically, they claimed, the import of raw materials is given third priority above exporters who bring currency into the nation.
Imports connected to energy are ranked second, while necessities like wheat and edible oil are first.
They criticized officials for their bad judgment in prioritizing the dollar-earning export industry below the dollar-spending sectors.
“How could you spend foreign exchange on essential items and energy if you don’t earn it first?”
They claimed that the government’s performance over the past nine months has been subpar.
They noted that during this time, there have been two finance ministers who have failed to end the current economic catastrophe.
They pointed out that neither the prime minister nor the finance minister cared to schedule a meeting with the exporters.
As the alarm bells for a sovereign default have been repeatedly ringing and the government’s finance and economic staff looks to be asleep at the wheel, they said that the industrial sector cannot function under significant financial hardship.
The nation is currently experiencing a dollar crisis, and the economy is in an emergency-like state. The best way to solve the current money crisis is to encourage exports.
To read our blog on “The textile industry is on its knees as a result of rising energy prices,” click here.
