Textile industry likely to meet export target

Government fixes textile export target at $14 billion for current fiscal year.

LAHORE: The textile sector is optimistic about meeting the annual export target, as high cotton prices in domestic and international markets have caused an increase in prices of value-added textile products, industry people say.

The government had fixed the textile export target at $14 billion for the current fiscal year. Members of the textile sector are of the view that achieving the target is possible, as exports of high value-added items such as knitwear and garments have increased in terms of value.

Statistics released by the Federal Bureau of Statistics (FBS) show that the textile sector has performed well in the first half (July to December) of the current fiscal year, as its exports increased by 25.79 per cent compared to the corresponding period of the previous year.

However, the industry believes that they would need to import up to five million cotton bales because the 11 million bales produced so far in the country will not meet the requirements as some of the crops have been destroyed by floods.

They expressed reservations about gas shortages in the country that have already caused a huge loss to the industry, particularly in Punjab.

All Pakistan Textile Processing Mills Association (APTPMA) Chairman Maqsood Ahmad Butt stressed that cotton prices reached Rs13,000 per maund (37.324 kg) and the sector may face a shortage of cotton in June if India did not lift the ban on exports.

“There is a possibility that exports will cross the $14 billion target if cotton shortages are met and gas supply is restored,” he added.

Published in The Express Tribune, February 6^th, 2011.