Textile exports growth shrink to 4.9%

The textile exports growth declined from 14.4% to only 4.9% during last four years from 2004-2007, according to the State Bank of Pakistan, in its Annual Report 2006-07. The reports says that the country had missed export target, and pointed out that just 3.4% growth is witnessed in the exports as against the target of 13.1% and overall exports stood at $17.1 billion during 2007 financial year.

Slowdown in the textiles exports can be attributed to low quality of the textile products on account of contaminated cotton and unskilled labour, besides concentration of exports in the low and middle value-added textile items, report said.

In addition, frequent power failures in the country, and EU market specific issues such as the anti-dumping duty on the bedwear exports and only partial restoration of GSP facility were the other factor responsible for decline in exports.

The rising cotton price, which was main input for textile industry, coupled with abolition of China’s specific textile and clothing safeguards in 2008 by the EU and the US, along with accession of Vietnam to World Trade Organization (WTO), were some factors that were likely to give tough time to Pakistan’s textile industry.

While the rising cotton prices might not increase Pakistan’s relative cost of production against its competitors as global cotton prices were also anticipated to rise, Pakistan’s apparel exports to the US and EU markets might weaken following the end of the US and EU safeguard measures imposed on China.