Pakistan textile exports recorded double digit growth of 11.24pc in August

Pakistan’s textile exports after witnessing downward trend for last several months has seen double digit growth of 11.24 percent in August 2015 as per data of Pakistan Bureau of Statistics (PBS) released on Monday. The unprecedented growth was mainly driven by substantial increase in export proceeds of raw cotton, cotton cloth, yarn, knitwear, bed wear, towels and readymade garments.

Exports of textile and clothing recorded at $1.02 billion in the previous month as against $889 million of a year ago.

According to the All Pakistan Textile Mills Association (APTMA), Pakistan’s textile exports were continuously declining from last many months due to the energy shortage, which decreased the country’s overall exports. Textile sector is confronting with several issues including tax refunds, additional taxes and higher energy prices and its shortage in the country, which are hampering the exports.

The textile exporters have exported the goods in August, which were stuck in July due to the lower prices in international market. The exporters then sold the textile goods in August at much lower rates at international market that resultant in huge losses to the textile exporters, said Gohar Ejaz former Chairman All Pakistan Textile Mills Association.

He further said that they have urged the Prime Minister Nawaz Sharif on September 11, 2015 to remove extra taxes, give competitive energy prices as compared to the region, electricity at nine US cents per unit and imposition of duties on semi-finished textile products, especially from India and China.

They also requested to clear their tax refunds and devise a mechanism to avoid their delayed payments and allow the rupee to come to a realistic market value.

Prime Minister Nawaz Sharif’s recent comprehensive meeting with exporters’ organisations signals a paradigm shift in government’s export approach that will give a massive boost to Pakistan’s exports. New policy directions and granular knowledge were generated in this consultation, which will form the basis of an export promotion package to be announced soon by the Prime Minister, as well as inform the Strategic Trade Policy Framework 2015-18 due to be announced shortly by the Ministry of Commerce”, said Commerce Minister Engineer Khurram Dastgir Khan.

According to the Pakistan Bureau of Statistics (PBS) data, product-wise details showed that raw cotton export witnessed a steep decline of 6.89 percent during the month under review from a year ago.

Exports of cotton cloth surged by 3.25 percent, knitwear by 8.9 percent, yarn 8.9 percent, knitwear 21.17 percent, bed wear 16.98 percent, towels 27.98 percent, art, readymade garments 30.43 percent and silk & synthetic textile export enhanced by 4.07 percent during August 2015.

Meanwhile, export of cotton yarn, dipped by 13.38 percent; cotton carded or combed by 100 percent and export of tents, canvas & tarpulin reduced by 48.69 percent.

The PBS showed that Pakistan’s overall exports have significantly decreased by 10.27 percent to $3.4 billion during first couple of months (July and August) of the current financial year from $3.8 billion of the corresponding period of the previous year.