Textile exports decline by 7.58 per cent

ISLAMABAD: Textile exports during the first nine months of the current financial year witnessed negative growth of 7.58 per cent as compared to the corresponding period of the last year.

Textile exports during July-March (2008-09) were recorded at $7.193 billion as compared to the exports of $7.783 during July-March (2007-08), according to Federal Bureau of Statistics.

Export of cotton yearn declined by 15.52 per cent, cotton carded or combed by 5.62 per cent, yarn other than cotton yarn by 53.30 per cent while the export of knitwear declined by 4.80 per cent.

Similarly, export of bed-wear witnessed a negative growth of 11.68 per cent, tents, canvas and tarpaulin 19.29 per cent, readymade garments 13.10 per cent, art, silk and synthetic textile 32.50 per cent, made up articles (excluding towels and bed-wear) 2.69 per cent while the exports of other textile materials witnessed a negative growth of 16.37 per cent.

Only three textile items showed positive growth. Export of raw cotton during the period under review witnessed an increase of 73.57 per cent as compared to the same period of last financial year.

Similarly, export of towels increased by seven per cent while export of cotton cloth witnessed positive growth of 3.53 per cent.

The economic observers believe that the textile sector was passing through a difficult phase due to energy shortage in the country, resulting in less production and exports.

Meanwhile, the government is all set to launch textile policy next month and is considering curative measures on the recommendations of stakeholders to address the problems and issues faced by the textile industry.

‘The textile policy is in final stages and would be announced in June,’ advisor to textile ministry, Dr Mirza Ikhtiar Baig told APP.

The ministry has consulted all textile sector associations and the chambers of commerce and industry and taken them board before finalising the textile policy, he said, adding that the policy was nearing completion.

Ikhtiar Baig said that the ministry has received recommendations for zero rating on import of textile machinery, zero rating exports, tariff reduction, incessant energy supply to textile units.

Issues related to market access and quality products with timely delivery and single digit mark up and special power tariff for the textile industry have also been recommended.

It has been suggested that textile policy might include the issue like duty free market access to European Union and US as Pakistan is the largest importer of US long staple cotton to the tune of $400 million to $500 million every year.