Global downturn, persistent energy crisis in the country, discontinuation of research and development programmes and non-availability of credit pulled down the exports of readymade garments by 12 percent during the first seven months of the current fiscal year.
A former chairman of Pakistan Readymade Garment Manufacturers and Exporters Association (Prgmea), Shehzad Saleem, told Business Recorder on Friday that the slackening global economy and unresolved energy crisis in Pakistan were the primary reasons behind the decline in exports.
He said he anticipated that the country's textile garments exports were going to plunge, keeping the present bad situations in view. He said that the government had turned a blind eye to the problems of textile sector, instead of helping it in pulling out of the crisis.
The electricity cut is the major issue, Shehzad said, and added that that private energy generation would increase the cost of production which would result in Pakistan's products in the world markets uncompetitive as compared to other regional countries.
The country exported $724.201 million of readymade garments during the first seven months (July 2008 -January 2009) of the current fiscal year as compared to $822.316 million during the last current fiscal year, depicting a slump of $98.115 million or 12 percent.
Similarly, the country's garments export stood at $105.468 million during January 2009 as compared to $115.303 million during January 2008, showing a decline of $9.835 or 8 percent. On monthly basis, export of readymade garment was $107.255 million during December 2008 as compared to January 2009, going down by $1.787 million or about 2 percent.
Shahzad expressed pessimism over the next six months garment exports, saying that there was likely further decline in it that would not only bring about closures of units on a high scale but would also give rise to unemployment.
He said that the government has not paid the garment exporters R&D support fund for exports till June 30, 2008, which is estimated to be over Rs 4 billion, that has also put negative impact on the continuation of business. Unlike Pakistan, China, India and other countries are paying proper attention to their respective industries in the face of global financial crunch, he complained, saying that there was no one in the government circles to pay attention to ailing industry.