Govt blamed for fall in textile exports

Tag : carded fabric


LAHORE: Textile entrepreneurs have blamed the government for losingthe opportunity to enhance exports last year.

Pakistan was the only country in the region that instead ofincreasing its exports by 15 per saw a decline of 20 per cent inquantity and 2.8 per cent in value, textile entrepreneurs say.

Rising cost of production forced the entire textile sector toincrease per unit value of exports that caused quantities ofexports to fall be nine to 35 per cent for different categories inthe first 11 months of last fiscal.

They said India, Bangladesh, China and even Vietnam cashed in onPakistans inability to exploit its true export potential.

Textile entrepreneurs are at loss to find out the right method tofurther boost exports as their efforts to increase the unit valueof each category resulted in decline in quantity.

The foreign buyers are not prepared to pay higher rates becauseexporters from competing economy provide similar products atcheaper rates said an exporter.

He said the Pakistani exporters already operating at a handicap of10 per cent due to terror tag are not in a position to matchcompetitors rates.

He said governments in competing economies are providingfacilitation and discounts to their exporters to remain viable inglobal textile exports.

He said indecision of the previous and present regime on this counthas paralyzed the entire textile sector.

According to the data available with Federal Bureau of Statisticsthe exports in different categories of textiles declined moresharply in terms of quantity than value.

Textile exporters point out that this is perhaps for the first timein countrys history that the per unit rates of almost all textileitems have registered increase.

They also regret that for the first time in more than a decade thetextile exports have declined in quantity.

They said that had there been some government facilitation in termsof special energy rates, market access and exposure of Pakistanitextiles in exporting countries through government channels therewould have been no decline in quantity.

They said the exporters then would have slightly reduced their perunit rates as well to increase exports.

They said country had the potential to earn more than $14 billionfrom textile exports in 2007-08 that was not utilized.

They said in the first 11 months of last year the cotton yarnexports in quantity declined by 15.5 per cent while in value itsexports declined by 9.4 per cent.

Cotton Fabric exports in quantity declined by 13.2 per cent whileits export in value reduced by 4.6 per cent.

This suggests that there was substantial increase in value ofcotton textiles exports Export of carded cotton yarn declined by 35per cent in quantity while it educed by only 21.8 per cent invalue. Bedwear exports were 9.2 per cent less in quantity and 5.4per cent in value.

Readymade garments exports were down by 13.4 per cent in quantityand 3.2 per cent in value.

Against exports of 5 per cent less towels the exports in valueincreased by 0.8 per cent.

Tents and Canvas exports decreased by 14.8 per cent in quantity andincreased by 1.9 per cent in value. There was a decline of over 35per cent in the export of yarn in quantity terms and 27 per centvalue. The knitwear exports were up by 2.5 per cent in quantity and1.8 per cent in value.

Knitwear in fact was the only major textile category where theexports have increased in quantity terms but the unit value hasdeclined.