KARACHI, Nov 12: Investors are active in textile, construction and mining sectors as amply indicated by the official trade figures of last four months. These figures show that the import of textile, construction and mining machinery and equipment has risen considerably. Also showing marked rise in import are steel scrap a vital input of construction industry.

Textile machinery and equipment import has increased by more than 47 per cent in dollar terms and about 70 per cent in rupee value during last four months indicating that restructuring, revamping and modernization of the industry is going on a fast track.

Official figures reveal that total import of textile machinery and equipment during July to October this year was worth over $159 million or more than Rs10 billion. In same period last year textile machinery import stood at $108.14 million or Rs5.97 billion.

Import of textile machinery and equipment has picked up since 1999-2000 when a bumper cotton crop was harvested and tycoons in textile industry reaped massive profits by getting their input at virtually a throw away price.

Anticipating a major change in international textiles trade from 2004 when textile export quota trade would be dismantled giving place to a free trade, textile tycoons took up the job of restructuring and modernizing their industry. The focus is on developing value-added textile sector.

Weaving, dyeing, bleaching and stitching garments is receiving greater attention by the textile investors. Since then the import of textile related machinery and equipment has picked up considerably.

Business sources say that they imported textile machinery worth over $595 million in 99-00 and $690 million in 00-01 and if all things went well they indicate a total import of textile machinery worth $600 million plus this fiscal.

Textile contributes more than 60 per cent to Pakistan’s export earnings and commands a weightage of 19.06 per cent in the large-scale manufacturing production index.

During 99-00 the textile showed a remarkable growth of 12.3 per cent which dropped to 4.5 per cent in last fiscal. The fall in production came mainly because of the phenomenal growth a year earlier and that cotton crop was of a much lesser size.

“Textile remains the mainstay of national economy and the only avenue where investors can show some manoeuvring to improve earnings,” a leading textile dealer explained the reason for maintaining investment tempo.

Investors retain same keen interest in the construction and mining. According to the official figures the import of construction and mining machinery and equipment has claimed $39.55 million during July-October 01, which is more than 58 per cent of the import bill in the same period of last fiscal.

Simultaneously, the import of iron and steel scrap went over by about 73pc in last four months to about $16m. In local currency terms, the scrap import has jumped by more than 96pc.

Import of iron and steel also went up to over $121 million up by 44 per cent mainly because of adjustments made in import duty structure in the current fiscal year’s budget.

Financial analysts say that activity in construction sectors involve a considerable size of manpower. It also stimulates a number of other industries that provide front and back linkages and is a source of employment. How long this remains sustainable is a question that remains unanswered.