MULTAN: Multan Chamber of Commerce and Industry (MCCI) President Khawaja Jalaluddin Roomi said on Monday that the liquidity crunch, high production costs, and inability to compete with regional players are some of the factors behind the fall in Pakistan’s exports.
US top export, China import destination for Pakistan in 2015
In January 2017, exports of knitwear declined by 3.44% year-on-year, readymade garments declined by 3.60% and of all textile products declined by 1.30%. Between July-January, exports of textile products declined by 1.54% year-on-year to $7.34 billion.
Roomi said the decline has led to lower production and subsequent closure of a number of export-oriented industries in both sectors.
The official said that in the light of these events, the government should immediately release all pending refunds as a relief to exporters so that they are able to halt this declining trend.
A recently-publicised export package, which was announced a day before Heimtextil kicked off on January 10, led to foreign buyers demanding more discounts from the exporters of Home Textile. Roomi lamented that his organisation was unable to understand the objectives behind announcing the export package a day before Heimtextil that prompted buyers to ask for further discounts.
Grim year for textile exports
Unwillingly, the exporters had to offer around 3% discount to keep their buyers.
“Seeing it this way, the export package has actually failed to provide any relief or benefit the exporters of home textiles.”
Published in The Express Tribune, March 7th, 2017.
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