Pakistan textile exports drop by 6.38pc in Dec 2014 despite GSP plus scheme

Pakistan textile exports witnessed plunge of 6.38 percent in December 2014 despite the availability of GSP Plus scheme. The major factors behind the substantial drop in exports are energy shortage and lack of working capital.

According to the Pakistan Textile Exporters Association (PTEA) details, the country exported textile goods worth $1.175 billion in December against exports of $1.255 billion in the same month of previous year.

Value-added items also recorded a negative growth as cotton cloth exports declined by 13.62%, bed wear 11.54%, towels 11.39% and made-ups 10.04%.

PTEA Chairman Sohail Pasha and Vice Chairman Rizwan Riaz apprehended that export numbers might be even worse in coming months as the textile industry of Punjab has been deprived of basic fuel and working capital.

Energy shortage and liquidity crunch are the prime causes of the decline as a major part of production capacity of the textile industry is lying idle due to short supply of electricity and gas.

Due to the non-serious attitude of the government, exports are heading towards collapse after a visible decline.

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