Synthetic Fiber Can Take Exports Beyond $30Bn

By Web Desk — Textile industry experts believe that Pakistan can boost textile exports beyond $30 billion by substituting cotton with synthetic fibre.

Hanif Lakhany, Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), stated on Friday that cotton prices had almost doubled in the international market over the past few days.

 “This raw material alone accounts for 60% of our total production costs,” he said.

Despite the textile industry’s significant contribution to the uplift of Pakistan’s economy – both in terms of exports and local employment – the industry faced a variety of challenges.

Pointing out the factors, he said that the “ever-increasing electricity tariffs” coupled with severe gas outages and dwindling domestic cotton production were taking a toll on the industry.

In addition, taxmen and other authorities harassed the businessmen, he said.

Cotton prices, a major raw material used in the textile industry, had also risen dramatically, he said.

Auto Industry Slams Taxes As It Negates Export Plan

In his remarks, Lakhany emphasized the need to restore domestic production to previous levels by setting a support price for cotton similar to other crops.

Also, he recommended diversifying the raw material sources by including all major synthetic fibres.

“It will require massive subsidies to purchase new machinery and plants,” he emphasized.

According to Arsalan Hanif, an AHL analyst, Pakistan’s textile exports include 70% cotton and 30% man-made fibre (synthetic fibre).

“Other countries export synthetic fibre more than cotton,” he said, adding that synthetic fibres – as a premium product – would not only increase textile exports but also create more jobs.