KARACHI: The government has projected $25 billion textile exports in the next three years, but industrialists and businessmen term it an ambitious target in the wake of power crisis and high cost of production. They also believe that the target of textile exports is unrealistic, considering the decline in industrial productivity and overall exports which dropped to $17.8 billion from $19.1 billion in fiscal year 2008-09 compared to last year. The ministry of commerce eyes an increase of some $1 billion in overall exports for the year 2010 while the ministry of textile targets $25 billion textile exports over the next three years, meaning an annual average surge of $5 billion. This shows lack of coordination between the two ministries.

The textile sector, which contributes 54 per cent to total exports and accounts for 42 per cent of total labour force, is trying to come out of serious national and international challenges. All Pakistan Textile Processing Mills Association (APTPMA) Chairman Nisar Shekhani told our sources: "In present difficult times it seems to be very difficult to get the government textile export target of $25 billion." He said hike in production and export is very difficult with the present shortfall of power and gas. From July 1, 2009 the government has also scaled up the gas prices through gas development surcharge.

The difference of gas determine price and gas notified prices is Rs23 billion which would add up in the rising cost of manufacturing. "We have suggested to the government to provide us 60 per cent gas for our machines that can run only on gas and give subsidy on furnace oil on which we would run rest of the machines." The government is in a tough financial position owing to the limited foreign reserves, and this month the government has to disburse the maturing Euro Bonds and deferred oil payments which would eat up another $1 billion, he observed.

"More production and more exports can only be achieved when cost of manufacturing comes down," he said firmly. He said interest rate is certainly a reason of high cost of production in the country "but it is not the only reason and reducing interest rate would not overcome the exporters' problems until and unless we come out of present power crisis." When asked what industrialists could do apart from the government for mitigating the problems, he replied that different sectors of the textile industry under the banner of 'council of textile' has already hired a firm in the United States in order to edge up textile exports to USA.

The firm has suggested opening an office in Washington DC for lobbying and finding out solutions to better prospects of 'Made in Pakistan' products in USA. "Although, the private sector pooled together all the funds for this initiative but still the government departments that work for promoting local products outside Pakistan should help us," he explained. SITE Association of Trade and Industry (SAI) Chairman MA Jabbar said the ministries should make wise policies and targets that can be achievable for the textile industry.

The government has itself projected the manufacturing growth target to 1.8 per cent for the year 2010 which has been highly affected owing to the negative growth in Large Scale Manufacturing (LSM) in year 2009, he said, adding that though overall growth in manufacturing was 3.3 per cent in year 2009, manufacturing is under severe pressure for numerous reasons. Sheikh Manzar Alam, Ex-Chairman, Korangi Association of Trade and Industry (KATI) spoke on the projected textile export in next three year the government wants to reap fruits with sowing seeds.

No significant efforts have been made by the government then "how could we expect that textile exports would improve as per the government projection," he wondered. He said: "In year 1990 the industrial growth of the country was 19 per cent and today it has been reduced to minus seven per cent, showing an overall decline of 26 per cent." This decline speaks volume about the current situation of industrial activity in the country, he lamented. It is an uphill task for the government to control power crisis, law and order along with high cost of production, without it increase in textile exports is nothing but a dream, he added.