TOBA TEK SINGH: Forty per cent textile units have been closed and this nosedive process will continue if immediate remedial steps are not taken to increase domestic production of cotton in addition to trimming electricity tariff and ensuring early payment of refund claims, particularly to the SME sector.

This was said by Imran Mehmood, the central chairman of the All Pakistan Bedsheets and Upholstery Manufacturers Association (APBUMA), in a statement on Thursday.

He said the survival of the textile sector hinged on the availability of abundant cotton, which had been witnessing a phenomenal decrease during the last 10years. He added that cotton production had been reduced to almost half due to the lack of incentives to the cotton growers.

`Some factory owners have already shifted their units to Bangladesh due to the unfavourable circumstances,` Mr Mehmood said and added that electricity and gas were also being provided at the highest rate as compared to the regional competitors. He pointed out the high markup rate, deteriorating law and order situation and inconsistent economic policies had hit the SME sector hard. He demanded the exporters should be given electricity and other inputs at competitive rates in order to make exportable surplus competitive in international markets.

Imran Mehmood said industry wasgetting electricity at 15 cent per unit while its rate in Bangladesh, India and China was only nine cent.

`With this huge difference, the SME sector could neither compete with its competitors nor is it profitable to run the industry with unbearable input cost.

He said this year, 125 factories had been closed while more would follow the suit if immediate relief was not provided.

He further said electricity was provided at 9 cent in 2020 and as a result, industrial units worked with full capacity. He urged the government to provide suitable climate to the industrial sector so that it could not only enhance its production for exports but also create the maximum job opportunities for the unemployed youth.