KARACHI, Aug 25: Pakistan is fetching the lowest price for its textile products in the European Union and the United States as compared to other textile exporters from Asia Pacific. Its share in total exports to the two markets is also declining, reveals a UNDP report.

The UNDP’s “Asia-Pacific Development Report 2006”, which was launched in Pakistan on Friday, shows that Pakistan is getting the lowest price for its textiles and clothing as compared to Bangladesh, India and China.

The report also disclosed that Pakistan could not get the benefit of the abolition of Multi-Fibre Agreement (MFA) and was barely able to maintain its old position, while China and India took the lead and captured the maximum space created after the quota-free regime.

Pakistan exported about one billion kg textiles and clothing to the European Union and the United States in 2005 and fetched the price at the rate of $5.38 per kg.

India got much higher price of $8.60 per kg and Bangladesh got even higher at $8.67 per kg. China received the highest price of $9.85 per kg.

Except Bangladesh all the three countries are large producers of cotton in the region. Bangladesh not only succeeded in fetching a better price higher than Pakistani textiles products but also increased its export by 2.3 per cent in terms of value and 4.2 per cent in terms of volume in 2005 as compared to 2004.

This must be shocking for economic managers and the textile ministry of Pakistan that Bangladesh, which does not produce cotton, got 59 per cent higher price for its textiles and clothing than Pakistan.

Pakistan exported textiles and clothing worth $5.39 billion in 2005, while Bangladesh increased its export to fetch $6.99 billion during the same period. But Bangladesh exported 805 million kg of textile and clothing while Pakistan exported over one billion kg during this period.

Despite a huge investment of $5 billion in the textile sector during the last five years, Pakistani exporters still rely on semi-raw material like cotton yarn and grey cloth for their export earnings. The finished textile products of Pakistan are facing serious problems and asking for help from the government.