September 28, 2006	Thursday	Ramazan 4, 1427

ISLAMABAD, Sept 27: The export of textile products declined by 7.10 per cent to $1.625 billion during the first two months (July-Aug) of the fiscal year 2006-07 as against $1.749 billion during the same months last year.

Official figures released here on Wednesday by the Federal Bureau of Statistics (FBS) showed that almost all textile products, excluding towels, cotton yarn, cotton carded or combed and tents, witnessed a negative growth during the months under review.

This showed that the government policy to give a six per cent cash subsidy on export proceeds on the name of research and development has failed, as this amount was mainly used to reduce the prices of Pakistani textile products for selling in the international market at competitive price. This means that Pakistan is indirectly subsidising the consumers of developed countries at the cost of the taxpayers’ money.

“There is a need for rethinking of the package. This must be linked with the enhancement in production or quality, etc., and it should be purely used for the research and development purposes,” said analysts.

The product-wise details of textile commodities showed that the export of readymade garments declined by 3.63 per cent during the fist two months of the current fiscal, over last year.

Exports of raw cotton and cotton cloth have declined by 59.66 per cent and 9.77 per cent, respectively. However, the export of cotton yarn rose by 21.61 per cent during this period.

Knitwear and bedwear exports decreased by 8.30 per cent and 11.20 per cent, respectively, during the months under review, over the corresponding months last year. However, the export of towels rose by 5.49 per cent and tents by 38.54 per cent.

The export of made-up articles, including other textiles, declined by 35.31 per cent, art, silk and synthetic textile by 53.89 per cent, and other textile materials down by 27.86 per cent during July-Aug 2006, over the same months last year.