FAISALABAD, Sept 6: Pakistan Textile Exporters Association Chairman Ahmed Kamal has said widening trade gap is shedding negative impact on the exchange currency value, escalating production cost and affecting exports. He calls for coordinated efforts by the economic managers in the new cabinet.

In a statement issued here on Monday, he congratulated Prime Minister Shaukat Aziz for his judicious selections of ministers to handle economic, commercial and industrial policies of the new government.

Pinpointing the major issues confronting the national economy, he said external pressures were engendering inflationary trends on the credit sector and investors were reluctant to further invest in new projects. Similarly, the export sector is also confronted with fierce competition from its traditional rivals, he stated.

Elaborating, Mr Kamal said recently the Indian government had given loaded incentives to its export sector, including free credit on quantum jump achieved by exporters. "Our rivals will be enjoying a comparative advantage of 20 per cent against their Pakistani counterparts. Yet another handicap, Pakistani exporters will be suffering from is the high cost of production," he added.

The cost of raw material in Pakistan has escalated due to an indirect effect of rise in petroleum product prices abroad. Sea freight rates have also increased by 30 per cent, making Pakistani consignments' transportation costly, he maintained.

The PTEA chief expressed the hope that the new minister for textiles industry would boost the export sector. He said the country was at the crossroads of its economic history in the face of textile quota regime phase-out and required an immediate decision-making process to tackle the new problems.