Pakistan textile exports shows significant progress

Pakistan textile exports have significantly improved, the consistent supply of gas to export oriented textile sector produced the desired results, especially in Punjab. For the first time, the government realized the fact and ensured gas supply to textile export industry under a special arrangement during winters which proved a successful step.

Textile exporters have welcomed the growth of 22.4 percent in textile exports for the month of December 2013 and termed the surge a pleasant sign for ailing economy.

According to Sheikh Ilyas Mahmood, Chairman and Adil Tahir, Vice Chairman Pakistan Textile Exporters Association, with the current growth rate, they can achieve the export targets set by the Government. Textile industry has the ability to double its exports in four years if Government ensured uninterrupted energy supply and release the stuck up amounts of exporters in different refund regimes.

Quoting the statistics, during the first half (July-December) of the current fiscal year, the export of the textile and clothing sector witnessed a growth of 8.36 percent, reaching at USD 6.94 billion compared with USD 6.40 billion a year earlier. Giving details of sector-wise analysis, export of value-added products, such as bead wear have raised to 21.72 percent, knitwear 5.35 percent, readymade garments by 7.9 percent, cotton cloth by 6.1 percent and export of made ups jumped by 18.09 percent during the period under review. However, the export of cotton yarn declined by 3.1 percent. Total export proceeds witnessed a growth of 5.11 percent to USD 12.63 billion in July-December 2013 from USD 12.02 billion a year earlier.

Sheikh Ilyas Mahmood was of the view that although textile exports have increased even then this increase is below the expectations. More important is the grant of GSP Plus status by the EU. Textile industry and hoping to see more growth in textile exports in second half of current fiscal year, said Ilyas who believes that exports of value-added products would observe a decent rise after coming into effect the duty waiver facility by EU. GSP plus status is a great edge for Pakistani textiles as it will provide great support to the Pakistani exporters enabling them to compete well with regional rivals in international market, he said; and he termed it a game changer for textile industry

PTEA officials stressed to evolve comprehensive industrial policies to fully utilize the benefits of GSP plus and demanded uninterrupted energy supply to industries round the year as it is expecting to achieve USD 14.5 billion of textile exports by the end of FY14 and country believes to succeed in adding at least USD 1 billion to textile exports every year until 2017.

Textile industry constitutes the lion’s share of Pakistan exports and has the ability to support the sagging economy of the country.