Pakistan textile export facing downward trend in the current year

Pakistan’s textile exports, the largest foreign exchange earning sector is facing a downward trend by 12.11 percent in the current year. Exports have declined to $8363 billion this year. Although the country is reaping the benefits of GSP, it has shown bleak performance in the export sector over which the Islamabad Chamber of Small Traders (ICST) on Sunday expressed deep concern and terming it unacceptable.

This decline is premised on the shortage of electricity and delays in the disbursement of export refund claims. The exports have been declining for the last two years despite achieving the preferential market access to the European Union.

The country is facing tough challenges in the international market. The government should secure the textile industry of the country since many textile owners are winding up their businesses and moving to other countries. The government of Pakistan should provide safe environment for the industry. The industry should be granted better incentives and friendly policies.

ICST urged the government to take immediate steps to arrest the trend as rival countries are snatching Pakistan’s share in the international market which will have a very negative impact on the economy.

The government should make a plan to provide affordable energy to the Punjab’s value added sector which rely on the supply of LNG, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt. He said that Punjab’s textile sector is already buying costly LNG while the value added sector of Sindh gets uninterrupted supply of natural gas throughout the year.

The exports of raw cotton have sharply dropped by 56.81 percent, while cotton yarn exports fell 17.24 percent. Exports of knitwear which is also a major earning sector has decreased by 1.85 percent to $802.894 million in the period under review, Shahid Rasheed Butt added.

Pakistan’s textile exports in the first four months of the current fiscal year declined by 4.35 percent to $4.082 billion which had fetched $4.268 billion last year in the four months. Exports continue to fall since last three years which is alarming.