KARACHI, June 2: Exports to European Union member states have experienced another setback owing to a decline in the euro value by around 10 per cent since the start of quota-free era from January 1. The worst affected products are textiles that are facing tough competition from China, India and Bangladesh. However, bedlinen, which is already under punitive duty from the EU, is expected to suffer the most.
According to official figures, exports of bedlinen to the European Union registered a fall of around 10pc to $909.941 million during July-March 2004-05, as compared to $1007.501 million during the same period last year.
At present the bedlinen export to EU member states is confronted with 13.1 per cent anti-dumping duty and 12 per cent customs duty, the combined effect comes to around 25.1 per cent. Depletion in the euro value by around 10 per cent is considered by exporters as very damaging.
As per the official figures of exchange rates, the euro, which was valued at around 80.5312 on December 30, 2004, is now stood at around 74.3831 to a rupee. Therefore, a decline of 10 per cent in the euro had made exports further costly and uncompetitive in the European market, the exporters said.
Despite the fact that imports from the EU will become cheaper with the fall in the euro value, it would hurt country’s exports.
“We would like the government to come forward and do the needful to save the industry from a total collapse, as bedlinen had always been a strong point in the exports sector, but with the changed conditions the country is gradually losing this position,” asserted Pakistan Bedwear Exporters Association Chairman Shabir Ahmed.
He urged the government to encourage and support exports of bedwear which was already on decline and suggested that research and development fund should be given at least by six per cent of the FOB value of exports.
Mr Ahmad said that Pakistan had a special place in the world market for its quality and cheap bedwear products and also had an edge over other nations but due to the changed circumstances it was fast loosing this position. “Due to higher input cost, mainly because of high utility charges and rapidly increasing mark-up rates, the cost of production has lately increased manifold and a large number units in Karachi have already been shut down,” he added.
