Shrinking demand: Industry seeks corrective steps as textile exports drop

Value-added products also show a decline in shipments.


Imran Rana March 25, 2015
$1.08b was the value of textile exports in February against $1.119b in the same month of previous year. PHOTO: ONLINE

FAISALABAD: With a drop in exports last month, textile exporters are demanding that the government take immediate corrective measures to stop the slide in shipments.

A representative of textile exporters, Sohail Pasha, said a 2.91% decline was recorded in February 2015 over the same month of previous fiscal year and a 9.96% drop was registered over the previous month.

Giving details, he said the country exported textile goods worth $1.087 billion in February against exports of $1.119 billion in the same month of previous year and $1.207 billion in January 2015.



The export of value-added products also fell as cotton cloth exports went down by 15.47%, bed wear 4.82% and towels 8.34% compared to the same month of previous fiscal year.

“These may not sound big numbers, but if the trend continues, it could spell some trouble for the economy, especially considering the fact that the trade deficit is continuously widening,” he said, adding the drop in textile exports was a clear indication that the textile industry, particularly the one in Punjab, was unable to tap the potential considering its capacity.

Pin-pointing the prime reasons behind the decline in exports, Pasha explained that high cost of doing business and lack of competitive edge over regional rivals including unprecedented energy constraints were affecting the growth in exports.

Recently, in a bid to edge out Pakistan from the global market, India has proposed huge subsidies for its textile exporters. Terming shortage of funds another hurdle in the export growth, he said a huge capital of the textile exporters was stuck in the tax refund cycle, dealing a blow to efforts to expand the industry.

Published in The Express Tribune, March  26th,  2015.

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