FAISALABAD, May 27: President of Habib Bank Ltd Zakir Mehmood has said that the local industry was in a better position to compete in the international market as production cost has increased by 30 per cent in China and India.

Talking to the textile exporters on Tuesday, he said that Pakistani textiles were not in a position to compete with India and China three years ago, but now situation had changed and export orders were expected following inflationary tendency worldwide.

He said that inflation was a global phenomenon and subsequently, prices and cost of production had jumped all over the world, including Africa, Latin America and even the developed countries.

Some of the inflation-hit countries may prove to be a boon for Pakistani exporters in the near future, he said.

He said that the textile and agriculture were the two pillars of the Pakistani economy and due importance had to be attached to these major factors.

Tahir Ishaque, a textile exporter, said that the textile sector had been facing severe crisis because of the abnormal increase in the prices of gas, electricity and petroleum products.

He said the price-hike had increased the cost of production and rendered this sector’s products uncompetitive in world markets.

The situation had also adversely affected the industrial production.

The crisis has been further compounded by recent 1.5 per cent rise in interest rate and 35 per cent L/C margin announced by the State Bank, he added.

Responding to questions, the HBL president said some times bitter decisions had to be made for obtaining long-term benefits.