The country''s textile and its made-ups have failed to actualise its exports target of 32 percent market share in the post-quota regime and had hardly bagged 21 percent, depicting a decline of 11 percent, industry sources said.
The official statistics show that albeit the country''s exports had increased in terms of its worth, the number of dispatched units or items had shrunk due to the increased input costs during the last one year and less access in the world''s markets, mainly in the European region.
The statistics up to April (10 months of FY06) show that the country''s aggregate exports stood at $13.52 billion as against $11.48 billion, illustrating a surge of $2.04 billion or around 18 percent.
Similarly, the textile exports from country during the 10 months were recorded at $8.022 billion as compared to $6.747 billion during the same corresponding period of last year, an increase of 19 percent.
This figure of $8.022 billion should have been $8.163 billion, because the current figure shows 19 percent increase in exports, but also explain that the rise in exports figures is basically high cost of doing business, which has interestingly increased to 19 percent as well, a textile miller commented.
Citing the example of a cotton bale, an exporter said that the industry last year had procured cotton at an average rate of Rs 1900 per maund, which has now increased to Rs 2300 per maund, showing Rs 400 per maund or 19 percent rise.
The rising costs are passed on to the foreign buyers, he said, adding that this practice had made the domestic industry price incompetitive in the international front.
Kingpins of textile industry said that Bangladesh and China had explored a number of avenues in the world market as both are price-competitive and are following aggressive international marketing strategy for promotion of their textile goods.
"India has set up Textile Upgradation Fund (TUFS) with Rs 370 billion to boost its exports," said an office-bearer of All Pakistan Textile Mills Association (Aptma), adding that the Indian government also intends to inject Rs 1400 billion by 2010 into the TUFS to compete with its regional and emerging giants in the markets of Europe and United States.
He pointed out that during a few years Bangladesh has installed 5 million spindles as compared to Pakistan which now has 10 million spindles.
Source termed the situation as ''alarming'' for the country''s exports as they expressed fear that the country could also not succeeded in exploring new avenues and markets in the next fiscal year FY07.
The country at present possesses 3 percent of total international textile trade of $300 billion. However, the gurus of textile industry believe that the country would face complexities and hardships in getting the $32 billion trade share by 2014.
"Our capacity utilisation stands at 50 percent, which must be 100 percent besides setting up of new units," another Aptma member said, adding that if the government wished to get boost to exports and bring it to $32 billion by 2014, it must give level playing field to the investors besides luring $2 billion fresh investments every year into the textile sector.
When asked to explain the rising cost of doing business in the country, a kin-pin of the textile industry remarked, "Other than gas, power, raw material, machinery and its spare parts, there are some hidden costs as well which are not yet recognised, like social security, EOBI, Export Development Fund (EDF), workers participation fund at the rate of 5 percent of the profits and workers welfare fund at the rate of 2 percent of taxable income."
"The taxes alone work out to 43 percent, against the misconception of 35 percent."
The country''s textile industry employs 38 percent of the workforce and contributes 11 percent towards GDP. It is not only paying a number of taxes and hidden costs, but is facing an acute shortage of skilled workers, human resource and infrastructure further intensifies the situation.
Aptma, while drawing attention of the government towards emerging regional giants including India, Bangladesh, Sri Lanka and China, sought help from the government to cut rising input costs and taxes besides allocation of huge funds for the upgradation and modernisation of the industry so that a colossal growth be witnessed in the exports in the coming years.
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