FAISALABAD, May 7: Renowned textile exporters and representatives of different industrialist bodies have warned that owing to decrease in export orders of textile fabrics, made-ups, bed sheets and knit garments during the last four months, the situation has taken a serious turn. Talking to newsmen here on Saturday, they apprehended that export to European markets had dwindled sharply as Pakistan’s heavily burdened exports were losing its competitiveness vis-à-vis Bangladesh, India and China in the post quota open competition.

The chairman, Pakistan Textile Exporters Association, Faiq Jawed and its Founder Chairman, Mian Jawed Anwar said that Pakistan’s textile exports were reeling under exorbitant anti-dumping barriers prohibitive credit finance rates, heavy and galloping cost of manufacturing inputs and overheads. It should not be surprising to find that national textile exports initially showing respectable growth rate of 13 per cent in the beginning have plummeted to 1 per cent average by the end of February 2005.

Spokesman of the Pakistan Hosiery Manufacturer Association expressed grave concern over the erosion of ‘traditional edge’ of Pakistani knitted shirts, T-shirts and jerseys in EU market as Bangladesh is briskly capturing the EU markets replacing costly Pakistani exports with its comparatively cheaper exports. Bangladesh has established its own knit fabric and woven fabric facilities on crash basis and is taking advantage of huge demand surge to back up its manufacturing facilities.

“Another dampening feature on export front is hike in the credit finance rate, which has gone up from 3pc to 8 per cent over the last six to three months.

The commercial banks have in turn raised their credit margin up to 12 per cent making the credit line costly for the exporter. With huge funds blocked in sales tax refund regime the exporters are constrained to rely on commercial credit for their turn over and export expansion but with this high mark up rate the exporters are unable to sustain their competitiveness vis-à-vis their rivals, he added.

Chief Executive, Faisalabad Value-addition City, Khurram Iftikhar, said that anti-dumping duty coupled with GSP concession withdrawal by EU totalling 25 per cent was the biggest obstacle in exports to the EU.

“How can you compete with your rivals with 25pc difference in price factor. Over the last four months there has been very poor response to our price quotations by European buyers, he added.

He said that Pakistani exporters had been repeatedly denied access to American markets. American industry has been successful in lobbying with quarters concerned to get high duty barriers against Pakistani textiles.