Pakistan weaving and spinning sector experienced drop in exports by 2pc in July

Pakistan’s all high power consuming sectors weaving and spinning registered a drop in exports by 2.37 percent in July due to power supply and instability prevailing in Pakistan. But the share of textiles in total exports of Pakistan has improved to 64 percent in July, according to textile trade body.

In the first month (July) of this fiscal year exports was $1.929 billion from $2.094 in July 2013, a drop by 7.8 percent. The monthly textile exports slid to $1.169 billion from $1.197 billion. The European Union’s generalised scheme of preferences status saved the exports from a plunge, according to SM Tanveer, chairman of All Pakistan Textiles Mills Association.

Yarn exports dived by 35.32 percent to $211.58 million in July 2014. Exports of fabric dropped 43 percent in quantity and 8.13 percent in value.
Since weaving sector operated at 60 percent of production capacity due to power supply shortfall, fabric production plunged.

Exports of knitwear, bed wear, towels and readymade garments increased by 21.66 percent, 14.54 percent, 7.43 percent and 3.76 percent, respectively, in July; the surge was owing to zero-rated access the value-added textile sector got from EU this year.

If the basic textile sector is not revived, the value-added sectors of textiles would come under pressure, which buy raw materials from the former.
The ongoing political turmoil in the country would badly impact the exports in August. However, the first 20 days of this month, the exports have been nominal.

But container owners are diffident to enter Punjab fearing their containers could be impounded by the provincial government.

Pakistan is losing a huge exports’ opportunity since there is no dearth of orders from the foreign buyers.

The government needs to take firm steps to improve its power management to ensure better supplies to the exporting industries and restore peaceful and calm situation in Pakistan.