Despite registering six percent growth, the country's export of almost all the textile products fell significantly short of their targets set for the first 10 months of current financial year.
According to the figures compiled by the Trade Development Authority of Pakistan (TDAP), the export of textile and garments products was $8.90 billion in July-April of 2006-07 against the target of $9.33 billion set for the period under review.
The statistics showing the actual exports and their targets in July-April of the current fiscal year suggest the textile products, which make bigger part of the overall textile exports were significantly lower against their respective targets. The break-up of different products indicates that cotton yarn export stood at $49 million in the said period against the target of $58 million.
The export of cotton yarn was $1.18 billion against the target of $1.26 billion, while the export of cotton fabrics $1.62 billion against the target of $1.99 billion. The export of readymade garments was $1.14 billion against the target of $1.17 billion, while the export of made-ups, excluding bedwear, was $377 million against the target of $417 million.
The bedwear export fetched $1.60 billion against its target of $1.68 billion. Towels export stood at $490 million against $526 million target during the period under review. On the other hand, items which exceeded their target during the first 10 months included yarn other than cotton which fetched $61 million against the target of $38 million.
The export of knitted/croached fabrics was $48 million against the target of $42 million. The knitwear export met the target of $1.60 billion by exceeding marginally. Also, the export of tents & canvas, art silk & syn.textile and other textile items surpassed their targets. Though, some exportable items exceeded their targets, however, it could not create a positive impact, as their share in overall export is too little to boost the exports.
The government, without considering the intense competition in the textile market, set unrealistic targets, which appeared difficult to be achieved right from the start of the current fiscal year.
The dismal performance of the textile exports is worrisome keeping in view the fact that exporters of these items are enjoying highest cash incentives presently in the form of low interest rates on short-term and long-term borrowing, besides cash subsidies. The official reports also suggest that despite these incentives, the competitiveness is lacking among the textile sector to produce quality products to compete with products manufactured in other countries.
The local products are low value-added and of poor quality, thus fetching low prices in international market as compared with those coming from other countries like India, Bangladesh, Sri Lanka, etc.
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