With increasing complaints from foreign buyers over the escalating prices of towel products, the country has lost foreign orders worth $14.837 million of towel products during July-February period of the current fiscal year, exporters said on Tuesday.
"This was only because of the soaring yarn prices and political unrest in the country which made production costlier and difficult to reach the foreign buyers on time," they said. The state of political turmoil prevailing for the last one year was restricting the foreign buyers from visiting Pakistan. To sell products in the world markets, local exporters have to visit neutral venues to finalise business deals, they said.
On the other hand, there is an acute shortage, of about 1.1 million bales of cotton, which the last government had completely overlooked, resulting in crisis-like situation in the local market, they added.
They said that foreign buyers are still inclined towards Pakistani products but their higher prices than countries like India, China, and Bangladesh have pulled down their growth in world markets.
About innovation in the products to stand firm against other competitors in world markets, they said that the government is not financially supporting such moves. "Traditional towel products still have demand. Therefore, there is no need to go for innovation without any government support. It is also an expensive venture with no lucrative outcome," they added.
Pakistan has exported $377.220 million worth of towel products during eight months of the current fiscal year as compared to $392.057 million during the same period of last fiscal year, declining by 4 percent or $14.837, according to official statistics.
However, a robust growth of 16.28 percent, or $6.516 million in exports of towel products was seen in February 2008 to $46.552 million as compared to $40.036 million of February 2007.
Exporters complained that local yarn exporters are damaging the country''s towel and other textile related products in the world market. "Towel products and other value-added textile items are made with local yarn by the some countries against Pakistani products in the international arena. As a result, exports decline," they said.
Turkey and Portugal are big markets of Pakistani towel products, they said, and added that shortage of quality yarn had made the manufacturers to use substandard yarn, which subdues the quality of products. Consequently, complaints from foreign buyers rise.
Exporters said that manufacturers are not able to produce on world standards for the unavailability of quality yarn, whereas the foreign buyers want a continued shipment for four months. "These buyers want us seal a deal for a longer period, minimum four to six months, while increasing cost of production during the same period does not allow us to go for such a risky venture," they elaborated.
Regarding dispatching the newly designed samples of items to foreign buyers, exporters said that they are constantly demanding for them but it is not viable for many exporters to fulfil for cost reasons.
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