February 26, 2006	Sunday	Muharram 27, 1427

ISLAMABAD, Feb 25: Pakistan’s export of readymade garments recorded a decline of 18.30 per cent to $99.453 million in January 2006 as against $121.736 million in the same month last year. Their exports showed a decrease of 4.92 per cent to $107.511 million in December 2005 as against $113.072 million in the corresponding month a year ago.

This indicates that a six per cent research and development subsidy and taxation relief for the sector might not remain more helpful to compete with those readymade products coming from China and India. High cost of production is another reason that made Pakistani products less competitive in the world market.

Official figures available with Dawn, however, showed that overall growth in the export of readymade garments during the first seven months (July-Jan) of the fiscal year 2005-06 increased by 37.68 per cent to $760.224 million as against $552.178 million in the same period last year.

The total value of textile products’ exports increased by 22.98 per cent to $5.591 billion during the July-Jan period as against $4.546 billion in the same period last year. Of these, exports of bedwear rose by 75.89 per cent, cotton yarn by 32.91 per cent, cotton cloth 21.83 per cent, knitwear 0.56 per cent and towels by 16.44 per cent during the period under review over the last year.

However, exports of tents, canvas and tarpaulin declined by 66.47 per cent, art, silk, synthetic textile by 37.53 per cent, and made-up articles by 12.01 per cent.

Similarly, exports of surgical goods and medical instruments recorded a decrease of 18.01 per cent. Carpets, rugs and made-ups exports declined by 4.85 per cent during the period under review, despite the taxation package announced in the budget for the sectors among others.

Exports of sports and engineering goods started picking up during the last two months of the current fiscal year. Export of engineering goods increased by 8.17 per cent and sports goods by 2.66 per cent during the July-Jan period of this fiscal year, over the same period last year.

In the sports group, gloves export declined by 56.03 per cent.

Exports of auto parts increased by 27.60 per cent, leather manufacturers by 42.63 per cent, footwear 10.23 per cent, chemical and pharmaceutical products 13.11 per cent and gems by 2.54 per cent.

The export of jewellery declined by 50.41 per cent, furniture by 12.12 per cent and molasses fell by 65.70 per cent during the period under review.

The export of primary commodities registered an overall growth of 29.43 per cent. Of these, export of rice increased by 49.64 per cent, fish and fish preparations by 26.69 per cent and spices surged by 87.83 per cent.