November 23, 2007	Friday	Ziqa’ad 12, 1428

ISLAMABAD, Nov 22: Textile and clothing exports in the first four months of the current fiscal year recorded a poor single digit growth despite billions given to the sector by the government in subsidies.

Textile and garment manufacturers were doled out more than Rs24 billion in subsidies in the past two years to boost export of their products, but they dashed such hopes of the government.

Official figures released here on Thursday by the Federal Bureau of Statistics showed that export proceeds of textiles and clothing reached $3.649 billion in July-October period of the current fiscal as against $3.612 billion during the same period last year--up by 1.03 per cent.

Even this poor performance in textile exports was also witnessed in October 2007 over the same month last year.

If this growth in textile sector, which constituted more than 66 per cent of total exports did not kick up in the months ahead, the achievement of the annual export target of $19.2 may become a dream.

Former textile industry minister Mushtaq Ali Cheema had conceded in a recent interview that subsidies meant for increasing exports have been diverted by beneficiaries in the setting up of industries in other profitable sectors.

These subsidies will reach the level of Rs50 billion by the end of June 2008 under the head of so-called six per cent research and development subsidy since April 2005 to August 2007.

According to the statistics, textile industry machinery imports witnessed a negative growth of 25.98 per cent in July-October period of the current fiscal year over last year.

This decline in textile machinery is not the current phenomenon, but it has been in vogue for the last couple of years.

It is true that some industrialists might have imported machinery for upgrading quality and production capacity, but the same has not been done in bulk and across the board.

A detailed analysis of the commodities export released here on Thursday showed that export of readymade garments witnessed a negative growth of three per cent in the first four months of the current fiscal year.

It would be very disturbing for the policy-makers to justify release of subsidies for garment, which witnessed a decline in exports.

Similarly, export of bedwear declined by 9.29 per cent and towels 20.10 per cent during the period under review over last year.

However, export of knitwear recorded a growth of 5.21 per cent during the year under review over last year.

Export of raw cotton, cotton yarn, cotton cloth, cotton carded, recorded a negative growth of 6.43 per cent, 0.08 per cent, 8.04 per cent, 51.27 per cent, respectively, during the period under review over last year.

Export of yarn, other cotton yarn, increased by 10.13 per cent, madeup articles 43.58 per cent, art, silk and synthetic textile 100 per cent, other textile material 2.12 per cent during the period under review over last year.