Rising cost, weak demand plunges textile exports by 9pc in July-Feb

With escalating cost of doing business and weak demand in the international markets, textile exports in the first eight months of the current fiscal year has plunged nine percent to $8.363 billion hitting the Pakistan’s major foreign exchange spinner, as per analysts.

According to the Pakistan Bureau of Statistics (PBS) data, textile exports amounted to $9.166 billion in July-February of 2014/15.

Exports of raw cotton slumped 47 percent to $74.427 million in the July-Feb period of 2015/16 over the comparable period, while cotton yarn exports decreased 33 percent to $895.841 million.

While, cotton cloth fetched $1.486 billion in the period under review, depicting 11 percent decline over the comparable period.

Exports of knitwear and bed wear also dropped three percent and five percent to $1.576 billion and $1.338 billion, respectively in July-Feb 2015/16.

The bureau’s figures further showed that textile exports also dropped equally five percent to $1.022 billion in February over January and the same month a year ago.

The country’s total exports decreased 13 percent to $13.868 billion in July-February 2015/16 over July-February 2014/15.

Shrinking cotton harvest and Chinese manufacturing slowdown along with European Union turmoil has (also) affected the exports. Furthermore, disproportional PKR/USD depreciation versus regional currencies also made textile products less competitive.

However, local supply-side factors coupled with international demand-side factors have taken a toll on textile exports, said Adnan Sami Sheikh at Taurus Securities Ltd.

Chairman Tariq Saud at All Pakistan Textile Mills Association (Aptma), in a statement, said that the export taxes and issues related to drawback on local taxes and levies are mutilating the competitiveness of the industry.

The Aptma urged the government to introduce, product-focus market schemes, export refinance for the value-added chain, clearance of pending refunds, availability of raw materials at the international competitive prices, free and regional trade agreements on comparative advantages and establishment of cotton research institutions under the public-private partnership.

Saud expressed doubt if the government would be able to achieve $35 billion exports target set in the recently-approved strategic trade policy 2015-18.

A leading exporter Jawed Bilwani said that the textile exports will further decrease as cost of doing business is increasing. Electricity and gas tariffs are on the rise and they are pushing up the cost of production.

However, the readymade garments got four percent surge in exports revenue to $1.437 billion in the eight months of the current fiscal year.

Recent Posts

Swisstulle advances dyeing efficiency with JigMaster

Swisstulle adopted JigMaster for its dyeing and finishing operations, especially for high-quality technical textiles used in fashion and automotive industries.

3 days ago

Birla Cellulose and Circ partner to scale textile recycling

Birla Cellulose, a leader under the Aditya Birla Group, has announced a long-term partnership with Circ, a U.S.-based textile recycling…

3 days ago

CARBIOS unveils enzymatically recycled polyester t-shirt

CARBIOS has collaborated with leading brands Patagonia, PUMA, Salomon etc. to create a groundbreaking polyester garment made entirely from textile…

3 days ago

Yangi launches sustainable fiber-based food tray

Yangi, renowned for its renewable packaging solutions, has launched a fiber-based food tray as a sustainable alternative to plastic trays…

3 days ago

Tarpaulife Project develops alternative to PVC-coated fabrics

The European Tarpaulife Project is working on polyolefin-coated fabrics, such as polyethylene, that can be manufactured to compete with PVC-coated…

3 days ago

Better Cotton to standardise measurements for cotton production

Better Cotton has joined the global non-profit alliance, Cascale, in a three-year project aimed at standardising LCA methods across the…

3 days ago