Raw fabrics markets ‘in deep recession’

Mohammad Saleem

Published about 3 hours ago

— Dawn

FAISALABAD: Raw fabrics markets are wearing a deserted look these days as trading volume has shrunk owing to continuously declining prices forcing the traders to seek alternative businesses..

The markets established near famous yarn market in Montgomery and Kharkhana bazaars, deal in different varieties of raw fabrics commonly known as ‘grey cloth.’

Such markets deal in first and second rated fabrics being provided by the small to big weaving units situated at Faisalabad, Lahore, Kasur, Sheikhupura, Karachi, Peshawar and other areas of the country.

Sitting on a raw fabric piece having shoe prints over it, Malik Sohail, a trader of Tikka Gali No 1, said: “We are facing losses with every passing day as the prices of all sorts of fabrics have been on the decline for the last one month or so.”

He said the textile sector had been buffeted by energy crisis, political uncertainty, rapidly falling prices of petroleum products and low buying capacity of consumers.

Sohail said for years nothing special had been done for the textile sector that was considered the backbone of the economy. He said the sector was fetching foreign exchange and also providing jobs to millions of people hailing from all parts of the country.

A survey showed that prices of different fabrics -- satin, cotton, denier, polyester, jeans etc -- witnessed a fall of prices ranging from Rs6 to Rs25 per meter in recent weeks.

Riaz Shahid, another trader, said the GSP Plus status had not provided any relief to local markets dealing in millions of rupees business daily.

He said: “We are under the impression that the GSP Plus status will give a boost to the crisis-stricken textile sector, but fruit of the facility is yet to be achieved.”

He said India and China were facilitating their businessmen with cheap electricity, gas and labour. “However, the situation in Pakistan is altogether different. Instead of communicating with the foreign buyers, exporters and entrepreneurs remained busy with the government negotiating smooth supply of gas and electricity.”

Another shopkeeper, Lala Tanvir, is also worried over precipitous fall in prices, and said a number of traders had left the business, fearing that the situation would inflict colossal financial loss on them.

Tanvir said both production of fabric and its prices were on the decline, creating a plethora of problems for traders, powerloom owners and exporters.

“It is difficult for us to get our payments for sold items as buyers are not receiving our calls even for days,” he said adding the situation was damaging the buyer-seller relationship that had been developed in years.

Traders have demanded of the government to look into the issues of textile sector by providing it with cheap and smooth electricity and gas.

Published in Dawn, January 6th, 2015