“Obviously, export figures of October are impressive, raising hopes that shipments would reach $23-24 billion this year,” said Muzammil Aslam, an economist at JS Global Capital Limited.
Due to high cotton and rice prices, it seems that exports of rice and other products will increase this year, he added.
For exports in October, the main driver was knitwear which earned nearly $207.6 million, showing a growth of 39 per cent. Cotton cloth, which fetched $201.9 million, showed a robust growth of 37 per cent compared to last year.
Exports of other important items like bed wear, cotton yarn, readymade garments and rice were over $100 million with an average growth rate of 33 per cent against the same period of last year.
The consolidated export figure for July-October 2010-11 is $7.17 billion, which is 19.2 per cent higher if compared to the last fiscal year.
Similarly, knitwear and cotton cloth were the main items that led exports with $754 million and $734 million respectively. Bed wear, readymade garments and cotton yarn were the items whose exports have crossed the $500 million mark during the initial four months of fiscal year 2010-11.
Jawed Bilwani, the chairman of the Pakistan Apparel Forum, said that the law and order situation and power shortages have crippled industries, but escalating export figures of the value-added textile sector is very encouraging. He added that the value-added sector is actually facing a shortage of raw material in the country which is causing serious problems for the industry.
Recently, both China and Bangladesh have seen power shortages which are part of the reasons for more export orders coming to Pakistan, he said, adding that Pakistan has a good chance to increase textile exports this year which can be achieved with proper planning.
Exports may drive economic growth
The phenomenal rise in exports may be encouraging for an economy heading out of its current downturn. The rupee depreciation was bound to increase demand for exports, especially those for textile products, and it is a heartening sign that despite social unrest and frequent power crisis, industrial performance was promising.
Economic growth for the current fiscal year may well be export-driven. Indeed most economies across the globe are looking to their export sector to lead them out of the current slowdown.
The European Union concession package, if managed correctly, will boost exports more and is likely to play an important role in the recovery of the economy.
Published in The Express Tribune, November 24th, 2010.
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