Pakistan textile exports dipped by 3.14 per cent in the first nine months of current fiscal to $7.765 billion from $8.017 billion the same period last year with serious repercussion on balance of payment as the sector contributes 67 per cent to total exports.
Pakistan faces serious challenges in balance of payment owing to running trade deficit through out the years with import twice to the total exports. The industry claimed that high input cost, law and order situation coupled with political instability are the major reasons diverting textile orders to other regional countries.
The textile sector, they argued heavily invested over $5 billion during last few years on up-gradation of their units but continuous rise in the costs of doing business have rendered them uncompetitive in the international market. The prices of raw materials including raw cotton, utilities, inflation and bank refinancing rate on exports they cite as major reasons for low growth in exports. It provides largest employment base to industrial labour, 40 per cent, as well as major foreign exchange earner in the country, they added.
They wanted the government to identify export-oriented units with provision of uninterrupted supply of power and gas at low rates to make them competitive against their regional competitors in the international market.
According to Federal Bureau of Statistics data released on Tuesday showed dismal performance by the sector due to decline in growth by cotton yarn, cotton cloth, cotton carded and combed, yarn other than cotton yarn, knitwear, bed wear, towels, and other textile material.
The only sub-sectors that showed marginal growth are raw cotton, tents canvas and tarpaulin, art silk and synthetic textile, made up article towels and bed wear.
The exports of cotton year declined by 8.27 per cent during the period under review to $966.04 million from $1.053 billion, cotton cloth by 11.01 per cent to $1.375 billion from $1.545 billion, cotton carded or combed by 23.75 per cent to 6.994 million from 9.173 million, yarn other than cotton yarn by 20.46 per cent to $39.630 million from $49.826 million, knitwear by 7.97 per cent to 1.346 billion to $1.463 billion, bed wear by 5.24 per cent to 1.403 billion from 1.480 billion, towels by 3.89 per cent to $432.145 million from$449.65 million and other textile by 3.80 per cent to $214.339 million from $222.808 million.
The exports of raw cotton showed 18.15 per cent growth during the period under review to $46.328 million from $39.212 million, readymade garments showed a growth of 7.30 per cent to 1.095 billion from $1.020 billion, art silk and synthetic textile 40.91 per cent to $396.116 million from $281.115 million, made-up articles 12.60 per cent to $388.782 million from $345.266 million.
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