All corrective measures, to keep the economy afloat ahead of a deeper recession expected next year the world over, should be taken immediately, said business and industry leaders, fearing if time is wasted, it would become difficult to save jobs as the industry would start crumbling in the absence of export orders from western economies which are fast heading towards a deep recession.

‘I must say that a contingency plan should be drawn at the national level by taking into confidence the four provincial assemblies and National Assembly so that the country could face the situation by reducing damages,’ observed Sheikh Manzar Alam, former chairman of Korangi Association of Trade and Industry.

He said that textile export constitutes around 65 per cent of total exports and out of these, around 80 per cent find their way to European and North American markets.

Therefore, he said if we do not take corrective measures ahead of deeper recession expected in the West, our bulk of exports would come to a standstill and there would be a severe foreign exchange crisis for the country.

Manzar Alam said textile exports worth $7 to $8 billion find their way to Western markets which include Europe and North American, and in case their economies run into recession next year, the country largest manufacturing sector of textile goods would also crumble down and it would result in massive unemployment.

Zulfikat Thaver, president, Union of Small and Medium Enterprises (Unisame), suggested that a bonus scheme for exporters be launched, which should entitle them to vouchers against exports for import of raw material, machinery and equipment on concessionary duties.

Secondly, he suggested tax exemptions, grant of land on concession for new industries to give encouragement and incentives to new-comers and Pakistani and foreign investors.

Mr Thaver said that to boost foreign exchange reserves, a premium plus rate of exchange for exports, home remittances for setting up industries and investment in schools, hospitals, housing, warehousing and logistics should be introduced.

Javed Chanio, chairman, Pakistan Cloth Merchants Association, said his members have start feeling slowdown in demand of fabric and feels that measures should be taken to avert deeper recession in economy.

He said there was an urgent need from the government side to have a contingency plan which could be used to avert a backlash of the adverse impact coming out from western economies.

Mr Javed said that the worst would be the slowdown in textile demand which is the mainstay of our economy and it is mostly exported to European and North American markets.

He suggested that all should be done to keep the inflow of foreign exchange through exports or remittances and this could be easily done, if government takes corrective measures by introducing incentives at different levels.

China and India have already taken steps to counter the ill impact of recession and have enhanced their rebate rates, particularly for their textile exports to the West, he added.