Energy Shortage

Due to load shedding of GAS and Electricity the Textile Production has been decreased. The legislative body of the all textile associations presented their serious concerns on the huge losses being incurred due to electricity & gas load shedding and the instant rise in the Electricity tariff. They said that the industry has already been crippled due to record high load shedding.

High Taxes

The Finance Bill 2009-10 is not textile industry friendly at all. Provisions like reintroduction of 0.5% minimum tax on domestic sales, 1% withholding tax on import of textile and articles, 16% Federal Excise Duty on banking and insurance services besides withdrawal of exemption of 16% sales tax and 4% withholding tax on machinery and parts in the Finance Bill 2009-10 are badly affecting already crippled industry.

Image Problem

United States cancels more than 50% of textile orders of Pakistan. US also imposes high duties on the import of textile of Pakistan which effect the export in a bad manner. US & EU are the major importers of Pakistan textile which creates a huge difference in export of Pakistan textile after imposing a restriction on import of Pakistani textile goods.

Cotton Production

The cotton production dropped to 12.845 million bales up to March 15, 2013 as against 14.548 million bales produced in the corresponding period last year. Data was jointly compiled by the Pakistan Cotton Ginners Association, All Pakistan Textile Mills Association and Karachi Cotton Association.