Pakistan - Textile Exports Miss Target By $2.4 Billion
Dated- 19 Jul , 2012 - Pakistan
The apprehensions of exporters that the export target will fall short of the mark by $2 billion have been proven correct. In fact the export target has been missed by $2.4 billion in the outgoing fiscal year, said Pakistan Textile Exporters Association (PTEA) Chairman Rana Arif Tauseef on Wednesday.
Tauseef said that he had brought this up in March and had warned that if the issues of gas and electricity supplies to industry were not resolved, the exports would miss targets by $2 billion.
Pinpointing main factors behind the decline in exports, he said that the energy crisis was the major reason that resulted in negative impact.
Foreign buyers were reluctant to place orders as they feared that the shortages will hamper production and the Pakistani exporters will not be able honour their commitments.
Tauseef added that textiles constitute the bulk of Pakistan’s exports which have declined by over 9.64% during the last 11 months. On the contrary, the textile exports from India, China and Bangladesh have increased by 5%, 6% and 8% respectively during the same period.
A number of textile units have shifted to Bangladesh due to the energy crisis, he said. High cost of doing business was another factor that caused exports to decline.
The government should take immediate measures to address the problems faced by textile sector or risk it going out of business, he advised. “The deteriorating law and order situation was also acting as a deterrent for foreigners to conduct business with Pakistani industries,” he continued.
He warned that the situation would worsen further in the coming months as the gas crisis hits its peak.