FAISALABAD - As the energy crisis and liquidity crunch have reduced the Pakistan’s share in global trade, the government needs to address these key issues on priority basis to stop negative growth and improve fragile foreign investment condition to put the country on track of economic growth, stressed the Pakistan Textile Exporters Association on Wednesday.

“Pakistan has lost her market share by one third, whereas the other countries have doubled their market share during the last 12 years,” said PTEA Chairman Asghar Ali and Vice Chairman Muhammad Asif. Asghar termed energy shortage and lack of finances the main reasons behind the decline. He elaborated that billions of rupees of textile exporters had been stuck up on account of exporters’ refunds of sales tax, duty drawback and DLTL regime with various government departments creating liquidity crunch.

“The Pakistani exports are facing difficulties due to prevailing economic financial, industrial and energy crises as well as deteriorating law and order which had badly affected the industrial and trade activities, the productivity output and workers employment. Textile export sector is a major forex earning sector to the tune of 10 billion dollar per year. Textile exports of the country are crumbling and the industry and business are squeezing due to unavailability of funds,” he said.

He said with closure of industry, poverty rate would increase and unemployed workers would take to the streets. He also warned that with the collapse of industrial sector and drastic decline in value added exports, precious forex and national revenues would be worst hit, shattering the national economy.

Expressing great concern, the PTEA office-bearers said that Pakistan’s share in global trade fell to 0.14 per cent in 2011 from 0.21 per cent in 1999 despite claims of the government that exports to the world market increased manifold during the period. Indian share in global trade scaled up from 0.67 per cent to 1.28 percent for the same period despite global recession. Even Bangladesh’s global market share was 0.06 per cent, which now has doubled and reached to 0.14 per cent, equivalent to Pakistan’s share. Pakistan is the only country which has a stagnant global market share despite the fact that government has taken a range of measures for liberalising its imports regime as compared to its neighboring countries, they argued.

“Pakistan’s exports fell to USD 23.64 billion in 2011-12 from USD 24.82 billion in 2010-11, showing a decline of 4.75 per cent. Contrary to this, world trade expanded by five percent in 2011 compared to 13.8 percent growth in 2010. Pakistan exports to Asian countries slightly fell to USD 11.709 billion in 2010-11 from USD 11.556 billion in 2011-12, showing a decline of 1.3pc. Similarly, Pakistan’s exports to Europe also fell to USD 5.957 billion in 2011-12 from USD 6.537 billion in 2010-11, showing a decline of 8.87 per cent,” they said.

Asif was of the view that all over the world and also in our regional countries, the governments help their industries by providing them with incentives and cheaper inputs enabling them not only to keep the wheel of industry running but also to successfully compete in international markets. Resultantly their exports have increased, however in Pakistan the industry is not only burdened with heavy taxes, high cost of energy but also disrupted supplies resulting in loss of productivity, he said.

The PTEA leaders urged the government to make a strategy to identify and solve economic issues to meet the challenges of global world. They demanded immediate payment of blocked refunds to enhance textile exports and national share in the world trade.