FCCI Chief Stresses Developing Import Substitution Industry

FAISALABAD, (UrduPoint / Pakistan Point News - 17th Jun, 2022 ) :The import substitution industry must be developed on war-footing to bridge the widening gap between imports and exports, said Atif Munir Sheikh, president Faisalabad Chamber of Commerce & Industry (FCCI).

Addressing businesspeople here on Friday, he said that exports were a prerequisite to stabilise national economy on a sustained basis, but the widening gap between imports-exports had become a major challenge for the country. He said that textile was the main foreign exchange earning sector and almost 45 per cent of the total textile export was contributed by Faisalabad alone.

He said country's exports were totally dependent on imports, which were increasing with the appreciation of the dollar. He said that rupee-dollar parity had staggered the costing process and both imports and exports had become unpredictable due to the fast-changing Dollar rates. He said that Pakistan must develop its own import substitution industry to discourage imports and cut the cost of production. "It was very important as our exports must maintain its inherent competitiveness due to its being a cotton producing country," he said and added that instead of wasting time on looking towards the government, the business community must take its own initiative by calculating demand and supply and profitability of their investment in the import substitution industry.

He said that the technology transfer should be an additional benefit for the country due to its trickle down impact on the SME sector.

He said that textile was the main consumer of imported dyes and chemicals and in this connection, he had already floated an idea for construction of a naphtha cracker unit in collaboration with Saudi Arabia or China. He said that he would once again take up the issue with the present government as the previous files had been dumped due to lack of proper follow-up. He said that the important project would be brought into the notice of the commerce minister so that negotiation could be restarted to undertake the proposed naphtha cracker plant on top priority basis.