KARACHI, Oct 31: Having failed to muster support from the government the textile industry is now seeking an exit strategy in place of a revival package.

Influential textile leaders confirmed that the industry has lost hopes and is presently in a state of despondency, which may lead to winding up their business instead of seeking favours from the government.“The fate of the textile industry is not different from the missing persons because no one in Islamabad is ready to take the responsibility for the rapidly sinking industry”, observed a leading textile tycoon.

Consequently, many industries in the spinning sector and value-added units, such as garments and hosiery, are quietly being wrapped up.

In the city of Karachi alone a sizeable number of value-added units have closed down thereby rendering thousands of workers jobless. Trade bodies do admit that big units involved in producing high quality products for chain stores of US and EU have closed down after sustaining huge losses.

Similarly, many spinning units are either running in loss creating bank defaults or are working at single shift in order to minimise losses and are eagerly looking for an exit strategy.

Most of the problems confronting textile industry are of fundamental nature, including high cost of production coupled with double digit mark-up and unfair subsidies given by regional countries to their textile exporters. Another factor, which is said to be “killing” is the law and order situation that prompts the western countries keep issuing travel advisories, thereby deterring buyers from visiting Pakistan.

Other nations also have an edge over Pakistani exporters owing to regional trade agreements and free trade agreements.

Moreover, the country continues to confront problem after problem starting from wheat crisis, sugar and other food shortage and inflation in cotton prices. The cotton crop has been the victim of pest attack but the ministry of food and agriculture instead of taking timely corrective measures was more than happy to announce downward production figures of the crop from 14.3 million to 12.8 million bale

According to some reports the entire Faisalabad textile sector, especially weaving and processing is in deep crisis. There are also reports of bankruptcies and piling of bad debts. Trade bodies claim that over two million spindles have recently closed comprising of 160 units have recently closed. Besides, a sizeable number of looms and some major processing mills have either closed or are running at 25 to 30 per cent capacity.

During August 2007, textile exports were down 52 per cent over last year. In September these were further down by 0.8 per cent. On month-on-month basis textile exports were down 3.1 per cent since July 2007.

Among major categories, cotton yarn exports are down 15.3 per cent, cotton cloth 6.3 per cent, bed wear down by 5.8 per cent, readymade garments is down by 6.2 per cent and towels by 20.3 per cent.

With indifferent attitude of the government the textile industry leaders fear that soon the entire sector would collapse, which will be disastrous for the economy of the country.