Chairman Pakistan Knitwear and Sweater Exporters Association (Paksea), Rafiq Godil has raised questions over government's claims appearing in the newspapers regarding 20 percent increase in textile exports. He said government has claimed that Pakistan's textile exports raised 20 percent in this quarter: July - September - October 2010 comparative to the last quarter.
Last year, yarn price was Rs 80 per pound while this year's quarter yarn price is Rs 180 per pound. Godil further said Pakistan's total export is one billion a month and last year, yarn export remittance remained $100 million. Pakistan's cotton export was $50 million while rest of the 850 million was value added.
So this year, he added, if we calculate yarn and cotton quantity wise, it has been low due to the extremely high prices of yarn. Unemployment rate has also increased to 30 percent due to these prices. Also, since last three months, yarn prices have not stabilised which is causing huge losses to the textile sector, he maintained.
Paksea chairman pointed out that neighbouring India drafted a policy to monitor and support their textile sector. They exported 10 million bales last year and after policy implementation, their target was set at five million bales for the current year. From March - October 2010, they banned cotton export and after October 2010, they allowed it, that too only with licensed and authorised dealers.
Conversely, in Pakistan, since six months, government is sleeping and is not controlling yarn and cotton prices. There is no initiative being taken by the government in favour of the textile sector. There has been massive unemployment with the exports highly reduced. People don't take orders in November - December, Godil added. Now, the question is how the government is claiming that exports raised to 20 percent when there is unemployment and textile factories have been shutting down due to high prices of yarn, he said.-PR
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