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Textile exports witnessed an increase of 5.96 percent in July-May 2014 as compared to the same period of previous year; however representatives of the textile sector termed the increase a usual phenomenon. Textile Industry Ministry officials argued that the share of Punjab province in total textile exports stood at 55 percent, Sindh's 40 percent while the remaining five percent belonged to other provinces.
However, due to capacity issues especially in Punjab, where 70 percent textile industry is based, the sector is faced with shortage of electricity and gas hence growth of textile and clothing remained stagnant at around 6-7 percent. The industry is facing 10-hour power and 16-hour gas loadshedding, which is badly hampering the production capacity.
According to the Pakistan Bureau of Statistics (PBS), textile exports were $1.2 billion in May 2014 against $1.176 billion during May last year, thus registering an increase of only 1.99 percent. The overall textile exports in the first 11 months of fiscal year 2013-14 were of $12.626 billion as against $11.916 billion during the corresponding period of the year before.
Talking to Business Recorder, representatives from textile sector said Pakistan's textile exports had not yet picked up momentum despite grant of Generalised System of Preferences (GSP) plus status by the European Union. Textile exports to the EU were expected to surge by one billion dollar a year after getting the GSP plus status.
However, there are several challenges including fluctuations in the prices of raw materials, energy shortages and stiff competition can mar the benefits of the scheme, they added. The exports of several textile items including towel, synthetic textile and cotton yarn are still showing a negative growth as exports of synthetic and silk textile during the fiscal year 2013-14 were of 348.39 million dollars compared to 369.17 dollars in 2012-13, showing a decrease of 5.63 percent.
The textile products that witnessed negative growth in trade included cotton yarn export, which decreased by 9.91 percent, from 2,061.091 million dollars last year to 1,856.824 million dollars in 2013-14. The exports of towels decreased from 713.756 million dollars to 699.882 million dollars, showing negative growth of 1.94 percent whereas the exports of tents, canvas and tarpaulin decreased by 26.41 percent by falling from 104.429 million dollars to 76.848 million dollars.
According to officials, there was a significant increase in post-January 2014 orders from the EU after getting a preferential status, however these orders are yet to be met due to a short span of time. In addition shortage of utilities particularly power and gas remain the main impediments to increasing output. However, the industry is expecting a significant increase in exports in coming months.

Copyright Business Recorder, 2014

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