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More industries to halt operations, warns value-added textile sector

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  • Value-added textile sector warns of job losses. 
  • Says exports have declined sharply. 
  • Around 7 million workers likely to lose jobs. 

KARACHI: Lamenting the current economic crisis, Pakistan’s value-added textile sector feared that more industries would halt their operations, which would increase the number of layoffs, The News reported Tuesday.

Associations representing the value-added textile sector, while speaking during a joint presser, said that other exports have declined sharply along with textiles. They said that it is likely to further decline to the lowest ebb amid dangerously low foreign exchange reserves.

Participants included Value-Added Textile Forum Coordinator and Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani, Pakistan Hosiery Manufacturers and Exporters Association Chairman Muhammad Babar Khan, PHMA Zonal Chairman Khizer Mehboob, Pakistan Knitwear and Sweater Exporters Association Chairman Rafiq Godil, Pakistan Cloth Merchants Association former chairman Abdul Samad, and chairman of the Towel Manufacturers Association of Pakistan.

They pointed out that industries were compelled to shut down and lay off around 7 million workers, of which 4 million were the textile sector’s workforce.

Raising the matter of letters of credit, the industry representatives said that import of necessary raw materials and accessories with even nominal values such as $5,000 were denied, which dented export orders. This caused severe disruption and delays in completion and even cancellation of export orders.

This situation also led to port demurrage of various consignments, which exceeded the cost of those materials that were damaged and would now be auctioned as they were of no use to export industries.

Recently, textile exporters were also deprived of their remittances to participate in a global textile exhibition scheduled in Germany and barred from sending exhibition materials via an international courier. Participation only became possible after the intervention of the Trade Development Authority of Pakistan, which sought special permission from the State Bank of Pakistan for the purpose.

The value-added sector demanded the government to give it first priority instead of third in imports of raw materials compared to the imports of even essentials like wheat and edible oil and energy.

Decrying the delay in the release of sales tax refunds, they asked the government to disburse the amount in 72 hours after approval of eRPOs instead of delaying it for two months.

Industrialists have lost faith in the government because of its failure to strengthen the economy. It was impossible to operate under extreme financial stress and an economic crisis. All priority should be given to the value-added textile exporters, the presser participants demanded. The government should allow exporters to spend 20% of their foreign remittances on the import of raw material and accessories.

SBP has already allowed exporters to retain 10% of their export proceeds in Exporters Special Foreign Currency Account to spend these US dollars on various purpose e.g. foreign consultant payment, hotel booking and travelling, payment for IT equipment and software, lab testing charges, audit/ inspection/ certification charges etc.

Talking about the gas crisis, the industrialists said that amid the gas crisis in the country, particularly in Karachi, they felt deprived of a level playing field and a viable business environment.

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Changes in the US dollar’s value are directly correlated with variations in gold prices.

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The price of 24-karat gold in Pakistan increased by Rs1500 on Thursday, reaching Rs231,000 per tola. This was another jump in the price of gold in the country.

Dealers reported a comparable surge in the price of 10 grams of 24-karat gold, which is currently trading at Rs198,045 after rising by Rs1285. In addition, the cost of ten grams of 22-karat gold increased significantly, trading at Rs 181,541.

These fluctuations are strongly correlated with shifts in the US dollar’s value, demonstrating the tight connection between gold prices and exchange rates. This emphasizes how local gold markets are impacted by variables related to the global economy.

At Rs2,580, the price of 24-karat silver remains steady right now. The price of gold increased significantly on a global scale as well, rising by $14 to $2,214 per ounce.

It’s critical to understand that changes in the worldwide market can have a substantial impact on gold prices in Pakistan throughout the day. The gold rates that are offered are obtained from reliable sources, mostly situated in Karachi and Multan.

It is recommended that individuals seek the advice of nearby gold merchants and jewellers for the most precise and current information regarding gold prices.

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Pakistan pledged to finish building the TAPI gas pipeline.

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The minister discussed the importance of the TAPI gas pipeline project for Pakistan’s energy needs during a meeting with Turkmenistan’s ambassador to Pakistan, Atadjan Movlamov.

The Minister was congratulated by Ambassador Movlamov on taking office and his commitment to the project was noted.

Dr. Musadik Malik thanked the ambassador for his kind words, acknowledged the support, and promised to maintain the two nations’ friendship. The intergovernmental commission and working group meetings for the project this year were briefed by Atadjan Movlamov.

He invited the Minister to attend the Turkmenistan Energy Forum, which would take place in Paris the following month.

TAPI undertaking
The project is for the construction of a 1,680-kilometer pipeline with a 56-inch diameter that can carry 3.2 billion cubic feet of gas per day (bcfd) from Turkmenistan through Afghanistan and Pakistan to the border between Pakistan and India.

According to the terms of the TAPI agreement, Afghanistan would receive its portion of 0.5 billion cubic feet of gas per day, while Pakistan and India will each receive 1.325 billion cubic feet of gas per day.

In order to carry out the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, Pakistan and Turkmenistan inked a cooperative implementation plan in Islamabad on June 4.

Prime Minister Shehbaz Sharif and a delegation from Turkmenistan, led by Minister of Energy and Water Resources Daler Juma’a, were present at the ceremony.

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The price of gold is still rising in Pakistan.

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According to the All Sindh Sarafa Jewellers Association, the cost of 10 grams of 24 karat gold grew by Rs. 86 to Rs. 196,760 from Rs. 196,674, while the cost of 10 grams of 22 carat gold jumped to Rs. 180,363 from Rs. 180,284.

The price of silver per tola and ten grams stayed at Rs. 2,211.93 and Rs. 2,580, respectively.

According to the Association, the price of gold on the global market rose by $7 to $2,200 from $.2,193.

It is important to note that Pakistani and IMF personnel have agreed at the staff level on the second and final review conducted as part of Pakistan’s Stand-By arrangement.

The International Monetary Fund (IMF) and Pakistan have reached a staff-level agreement on the second and final review of Pakistan’s stabilization program, which is supported by the IMF’s US$3 billion (SDR2,250 million) SBA Agreement. This is according to the official statement released by a team led by Nathan Porter.

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